March 24 (SeeNews) - Albania's central bank decided to raise its policy rate to 3.00% from 2.75% in a bid to facilitate the return of inflation to target, governor Gent Sejko said.
The central bank also increased the interest rate on the overnight lending facility to 4.00% from 3.75%, as well as the rate on the overnight deposit facility to 2.00% from 1.75%, Sejko said in a statement on Thursday.
"The Supervisory Council deems that this decision is necessary to guarantee the stable return of inflation to the target, within a reasonable time horizon ant at rather low long-term costs on the Albanian economy," Sejko said.
Annual inflation in the first two months of 2022 was higher than expected, standing at 7.2% and 7.1% in January and February, respectively, the statement read.
Thus, continuing inflationary pressures represent a risk factor for the price stability and economic growth, the governor concluded.
Albania's central bank assesses that the economic growth will remain in a positive territory, while inflation will gradually decline toward the target during the next year.
The central bank increased its policy rate five times in 2022 - in March, July, August, October and November.