The central bank kept overnight deposit and lending rates at 1.5% and 3.5% as inflation averaged 3% in the second quarter and officials flagged Middle East risks.
The Bank of Albania kept its key policy rate unchanged at 2.5% at its August meeting, judging its current monetary stance appropriate to guide inflation back to target. It also left the overnight deposit rate at 1.5% and the overnight lending rate at 3.5%. Consumer inflation averaged 3% in the second quarter, up from the previous quarter and in line with the central bank's expectations, helped by higher transportation and unprocessed food prices. The bank said economic growth continued to draw support from household consumption and business investment, while fiscal policy remained on a consolidating path. It expects inflation to stay slightly above target in the near term before gradually easing to target, though uncertainty tied to the Middle East conflict could lift inflation further and weigh on growth. Future policy decisions will remain focused on preserving price stability.