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2025.08.0614:47:26UTC+00Albania Keeps Policy Rate Unchanged at 2.5%

The Bank of Albania maintained its policy rate at 2.5% during the policy meeting on August 6, following a reduction of 25 basis points in July. The overnight lending rate and the deposit rate were also kept steady at 3.5% and 1.5%, respectively. Annual inflation increased to 2.4% in June, reaching its highest point since February 2024, though it continued to fall short of the central bank’s target of 3% set for 2025. Concurrently, GDP experienced a year-on-year growth of 3.4% in the first quarter of 2025, representing the slowest growth rate since the fourth quarter of 2023. This decision indicates a cautious approach by policymakers as they evaluate the balance between inflationary pressures and economic growth.

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