The central bank of Albania held its monetary policy rate at 1 percent on October 3rd 2018, saying inflationary pressures from foreign markets were offset by a stronger currency. In August, annual inflation rate edged down to 2.2 percent from 2.3 percent in July and is expected to return to the target of 3 percent by 2020. Policymakers added that the normalization of interest rates will not start before the second quarter of 2019. The overnight deposit facility rate and the overnight lending rate were also kept at 0.1 percent and 1.9 percent, respectively. Interest Rate in Albania averaged 4.54 percent from 2001 until 2018, reaching an all time high of 8.50 percent in April of 2002 and a record low of 1 percent in June of 2018.
Interest Rate in Albania is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Albania to stand at 1.25 in 12 months time. In the long-term, the Albania Interest Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.