Albania Holds Policy Rate at 2.5%

2025-10-01 15:20 By Dongting Liu 1 min. read

The Bank of Albania held its policy rate at 2.5% on October 1, marking the second consecutive monthly pause.

Overnight lending and deposit rates remained at 3.5% and 1.5%.

GDP grew 3.5% year-on-year in Q2, slightly below 3.7% in Q1, supported by domestic demand, investment, and tourism, while weaker exports and rising imports weighed on growth.

Inflation in July and August reached 2.4%, slightly above 2.3% in Q2, mainly due to rising rents and stable oil prices.

Labor market conditions remain strong, with employment up 3.4%, private sector wages rising 9.5%, and unemployment at 8.5%.

Credit growth of 14%, low non-performing loans, and a diversified loan structure continue to support the economy.

The central bank said domestic inflationary pressures are moderate, imported pressures low, and financial conditions accommodative, though external uncertainties and commodity price volatility warrant caution.



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