BoA: Economy Expected to Grow in the Mid-Term

TIRANA, March 29

The Bank of Albania (BoA) will keep the key rate unchanged at the level of 1.25 percent at least until the third quarter of 2018. BoA’s Governor Gent Sejko said during a press statement held on Wednesday that the monetary policy stance remains adequate for boosting economic growth and for the sustainable return of inflation to the 3% target.
Moreover, he added that the Albanian economy is expected to grow further in the medium-term.
Currently, the inflation remains below the target level.
“The Bank of Albania deems that the gradual return of the economy to its potential and the fuller utilization of production capacities will be accompanied by a faster increase in wages and production costs, hence strengthening domestic inflationary pressures. Also, inflation in foreign markets is expected to rise, whereas the appreciation of the exchange rate is expected to diminish, thus enabling a complete transmission of foreign pressures into domestic markets. Lastly, inflation expectations are expected to trend up, following the factual performance of this indicator,” Sejko said.
Moreover, he called on the Albanian government to improve the business climate and to support the producing sector of the economy.
News Source/Photo Credit: BoA