May 9 (SeeNews) - The Bank of Albania said on Wednesday it has decided to maintain the key rate at 3.25% due to ongoing internal inflationary pressures, despite their gradual decline.
Inflation eased to 2.7% on average in the first quarter, down from an average of 3.9% during the fourth quarter of 2023, central bank governor Gent Sejko said in a statement. The deceleration is mainly due to a slowdown of inflation in imported foods.
Preliminary data indicates sustained economic growth in the first quarter, supported by increased consumption, private investments, service exports, with tourism increasingly contributing to the overall economic activity. However, goods exports declined and industry and agriculture contracted.
The central bank also maintained the interest rate on the overnight lending facility at 4.25% and the rate on the overnight deposit facility at 2.25%.
Albania's EU-harmonised index of consumer prices (HICP) rose 2.4% year-on-year in March, decelerating from a 2.8% annual increase in February, the statistical office, INSTAT, said last month.
The Bank of Albania increased its key rate six times in 2022 - in March, July, August, October and in November, keeping it unchanged thereafter.