Low inflation for next year too
16/12/2015 00:00
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The Bank of Albania declared that the price increase will be low for the
next year too. After the last meeting of the Supervisory Council,
Governor Gent Sejko listed the reasons that brought the bank to this
prediction.
“The Bank of Albania thinks that the negative production gap and the lower prices in international markets will continue to be present during a short time. Their inflation impact will compensate the higher product prices. As result, the average inflation for 2016 will be around 2.3%. The inflation will follow a growing tend and will return to our objective of 3% for 2018”, Sejko said.
The Supervisory Council decided to keep the interest rate unchanged at 1.75%, warning that the monetary policy will remain facilitating for the next year too, ni order to support revival of credits.
“Keeping the interest rate unchanged leaves more room for a complete monetary stimulus during 2015 in the financial markets and the economy. Based on this information and on the evaluations of the Bank of Albania, the Supervisory Council decided that the monetary policy will be facilitating even for 2016”, Sejko declared.
The Governor said that the revival of the economic growth and credit does ont depend only on the policies of the Bank of Albania, but it also requires the contribution of the Albanian government.
The Bank of Albania notes that the economic growth for this year will fluctuate from 2.5% to 2.7%, while in the next year it will accelerate to above 3%.
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