Albania Interest Rate

The Bank of Albania lowered its policy rate by 25 basis points to 2.75% at its November meeting, following two sessions with no change. The Supervisory Council of the Bank of Albania noted positive trends in economic, monetary, and financial stability, with robust economic activity over the first three quarters of the year. Inflation remains low, public and external debt levels have decreased, and banking sector balance sheets are stable, while lending is gradually increasing. In Q3 2024, consumer inflation averaged 2%, slightly down from Q2, driven by lower oil prices and a slower rise in rental costs, though food prices recorded a slight increase. In terms of economic growth, Albania’s economy expanded by 4% in the first half of 2024, with preliminary data suggesting a similar performance in the second half. This growth has been mainly supported by increased household consumption and higher investment activity.