Base interest rate in Albania drops to a historical 2.75% low

Base interest rate in Albania drops to a historical 2.75% low

Tirana, February 27, 2014/Independent Balkan News Agency

Base interest rate for the Albanian currency, Lek, has touched a historical low of 2.75% through a decision taken yesterday by the Oversight Committee of the Bank of Albania (BA).

In yesterday’s decision, the Oversight Committee of the Bank of Albania decided to reduce by 0.25% the base interest rate for the repurchase agreements and reverse repurchase agreements (REPO and reverse REPO).

“Base interest rate of repurchase agreements and reverse repurchase agreements drops to 2.75% from 3 %”, informed the Bank of Albania.

Oversight Committee of the Bank of Albania decided to drop base interest rate, two and a half months after applying the same drop at the end of the year.

Governor of the Bank of Albania, Ardian Fullani said that the decision came in the framework of the monetary policy decision making of the Oversight Committee, after it deliberated and approved the Monthly Report of the Monetary Policy.

“The Oversight Committee was informed about the latest economic and monetary developments in the country and in my assessment, the increase of the monetary stimulus offers the necessary conditions to meet the medium term inflation objective, by boosting aggregate demand and meeting inflationist expectations.

Based on this information, Bank of Albania believes that the expected economic and financial developments require a facilitating monetary policy in the upcoming quarters.

Bank of Albania believes that this policy will help in offering the necessary conditions in meeting the medium term inflation objective. /ibna/