The central bank also raised the interest rate on the overnight lending facility to 3.75% from 3.25%, as well as the rate on the overnight deposit facility to 1.75% from 1.25%, Sejko said in a statement on Wednesday.
"This assessment is based on the continuing presence of soaring prices in global markets, the relatively strong demand for goods and services in Albania, the increasing utilisation of production capacities, and on the expected higher inflation rate from the economic agents," Sejko said.
Albania's consumer price inflation averaged 7.9% in the third quarter as a result of the higher prices of food, oil and transportation on a global level. The central bank expects inflation to start slowing down in 2023 and return to target in the first half of 2024, according to the statement.
Albania's economic growth is expected to continue, although at a slower pace in the short term due to increasing inflation in the country and worldwide. The effects of rising prices is manifested in the form of increased uncertainty of enterprises, acute tightening of financial conditions, contracted purchasing power and a larger import bill for the Albanian economy.
However, projections remain uncertain, with inflationary risks tilted to the upside and those related to economic growth - to the downside, Sejko said.
Albania's economy expanded by 2.2% in the second quarter of 2022, according to the latest data by the statistical office.
Since the beginning of 2022, Albania's central bank has raised its key policy rate four times - in July, March, August and October.