Fullani: Interest rate 0.25 lower
29/09/2011 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The Governor of the Albanian Bank, Ardian Fullani, declared that the
Supervisory Council decided to decrease the interest rate with 0.25,
bringing it back to the lowest historical level of 5%.
As Top-Channel announced one day earlier, bank experts think that the slowdown of the price increase trend has created the conditions for enabling the bank to give a new incentive to the economy, which still remains above the average potential and with a slow rythm.
According to INSTAT, the annual price increase went down to 3.1% this August, near the optimal targeted level. On the other hand, the decrease of the basic rate aims to increase the money circulation in the economy through investments and consume. The Albanian economy is facing a situation when the economic agents, mainly the citizens, are aiming to save money and consume less.
The interest rate decrease has two goals. The first is to make savings less convenient, because the deposits would decrease with the interest rate, and secondly, it would encourage investments and consume through low interest for loans.
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