Bank of Albania Holds Rates Steady

2026-11-04 15:20 By Larissa Caser 1 min. read

The Bank of Albania kept its benchmark interest rate unchanged at 2.5% at its November 2026 meeting, as policymakers considered the current monetary stance appropriate amid solid economic growth and inflation close to target.

Inflation eased to 2.9% in September, down from 3.2% in August, following a slowdown in rental price increases, although higher agricultural and food prices continued to exert pressure.

Economic activity remained robust, with GDP growing 3.6% in the first half of 2026, supported by consumption, investment, exports and rising employment and wages.

Credit growth also remained strong at 15.5% in Q3.

The central bank expects inflation to temporarily exceed its 3% target due to higher energy prices and external inflationary pressures, before returning to target in 2028.

However, geopolitical tensions and uncertainty over the new fiscal package pose risks.

Future policy decisions will depend on inflation, external conditions and price stability risks.



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Bank of Albania Holds Rates Steady
The Bank of Albania kept its benchmark interest rate unchanged at 2.5% at its November 2026 meeting, as policymakers considered the current monetary stance appropriate amid solid economic growth and inflation close to target. Inflation eased to 2.9% in September, down from 3.2% in August, following a slowdown in rental price increases, although higher agricultural and food prices continued to exert pressure. Economic activity remained robust, with GDP growing 3.6% in the first half of 2026, supported by consumption, investment, exports and rising employment and wages. Credit growth also remained strong at 15.5% in Q3. The central bank expects inflation to temporarily exceed its 3% target due to higher energy prices and external inflationary pressures, before returning to target in 2028. However, geopolitical tensions and uncertainty over the new fiscal package pose risks. Future policy decisions will depend on inflation, external conditions and price stability risks.
2026-11-04
Albania Leaves Key Rate Unchanged
The Bank of Albania kpet its benchmark rate unchanged at 2.5% at its October 2026 meeting, as policymakers stated that the current monetary stance remains appropriate to support inflation's return to target. Inflation averaged 3.3% in July-August, driven by higher fuel and unprocessed food prices, as global commodity costs rose amid heightened geopolitical tensions in the Middle East. Meanwhile, core and domestic inflation eased, although tight labor market conditions and rapid wage growth continued to pose upside risks over the medium-term. Economic activity remained solid, expanding 3.6% year-on-year in Q2, supported by consumption and investment. The central bank expects inflation to rise moderately over the next two quarters before gradually returning toward target over the medium term. Future policy decisions will depend on incoming inflation data, fiscal policy and exchange-rate developments.
2026-10-07
Albania Keeps Key Rate Steady at 2.5%
The Bank of Albania left its key policy rate unchanged at 2.5% at its August meeting, saying the current monetary stance remains appropriate to support inflation's return to target. The overnight deposit and lending rates were also kept at 1.5% and 3.5%, respectively. Consumer inflation averaged 3% in the second quarter, accelerating from the previous quarter and in line with the central bank's expectations, driven by higher transportation and unprocessed food prices. Economic growth continued to be supported by household consumption and business investment, while fiscal policy remained on a consolidating path. Inflation is expected to stay slightly above target in the near term before gradually easing to target. However, uncertainty surrounding the Middle East conflict remains a risk, potentially pushing inflation higher and weighing on economic growth. Future policy decisions will remain focused on preserving price stability.
2026-08-05