Bank lowers interest rate again

“The Supervising Council of the Albanian Bank decided to reduce the interest rate with 0.25%, bringing it to 4.25%. This decision was motivated by decline of inflationist pressures and the need for growing the macroeconomic stimulus”, declared Governor Ardian Fullani.

Experts expected the Bank to reduce the interest rate lower in the last time. The new reaction only after a few months shows that the shadows of the international crisis are not disappearing, but they are keeping the economic growth in the dark, even for the future.

“The pressures for the expected economic progress support our previous evaluations for a further positive growth, a potential growth in the following year. However, the dangers have increased as result of the unfavorable economic developments in the world market”, Fullani underlined.

There is another reason that motivates the bank to reduce the interest rate. Being alone in the market for giving a stimulus to the economy, the Bank used its only weapon, the interest rate, in order to ease crediting.

“The economy in general and its growth with commercial partners will be slow and the favoring conditions in Europe will shrink. This came as result of the orientation of the fiscal policies towards the fiscal elements”, Fullani added.

The Governor hopes that the recent reduction of the interest rate could incite the economic growth, but the Bank cannot achieve this alone. Mr. Fullani declared taht the Albanian business should start profiting from the advantages of the international crisis, and that the public should not be passive, but increase consumption, because the profit from cheaper loans could be a good opportunity.

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