Albania's central bank kept its benchmark repo rate unchanged on Wednesday at 1.25 percent, its lowest level ever.
In his monthly address, Governor of the Bank of Albania Genti Sejko hailed the approval of the constitutional package of the judicial reform as a positive development which will have a good impact on the economy of the country.
“Any political destabilization will have a negative impact on the economy and the opposite is true as well. The approval of the judicial reform by 140 votes was a positive development,” Mr. Sejko said. The Supervisory Council of the Bank of Albania reviewed and approved on Wednesday the Monetary Policy Report for the second quarter.
In conclusion to the discussions on the most recent economic and monetary developments and the expected outlook, the Supervisory Council decided to leave the key interest rate unchanged at 1.25%.
Additionally, the Supervisory Council decided not to alter the interest rate corridor in the interbank market, assigned at 0.25% for the overnight deposit interest rate and at 2.25% for the overnight lending rate.
Governor of the Bank of Albania Gent Sejko declared in a press conference that the progress of Albanian economy and financial markets has been generally in compliance with expectations.
“Economic activity resulted in broadening during the first half of the year, inflation had tendencies of growth during the second trimester, while the encouraging side of our monetary policy has enabled the creation of a liquid financial environment and with low interest rates,” said Sejko.
According to him, in these circumstances, middle-term expectations have not changed and the current stance of monetary policy is estimated to be suitable to achieve the goal of stability of prices in a middle-term period.