Bank of Albania reduced the interest rate for the eight time, bringing it down to a historic level of 2.75%.
The Supervisory Council of the Bank declared that the increased interest rate creates the conditions for returning inflation within the legal objective, and helps the economy. This move from the Central Bank confirms the difficult economic situation, that suffers from dropped consumption and fewer investments.
The official declaration of the Supervisory Council notes that 2013 was characterized by a weak economic growth and low inflation level.
But this year, Bank of Albania declares that they are expecting a gradual improvement of the economy, which, according to them, will still be under the potential.
The Central Bank foresees in parallel that the inflation will keep being low during the entire 2014, regardless of the grown excise level, for which the Bank notes that there will be a lower effect in growing prices than the initial evaluations.
In these circumstances, the Supervisory Council notes that the dropped interest rate aims creating the right monetary stimulus for returning the inflation, within the legal band from two to four percent, and encourage more circulation of the currency.
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