Quarterly Monetary Policy Report, 2016/I

During the second half of 2015, the economy performed on the up side of Bank of Albania expectations. The expected growth for the year was therefore revised slightly up. The Bank of Albania expects economic growth to accelerate progressively over the years ahead driven by low interest rates, enhanced confidence and improved sources of financing. These developments are expected to create the conditions for the gradual return of inflation to the 3.0% target within the medium-term horizon. The actual monetary conditions are adequate for achieving the inflation target within this horizon. With the approval of this report, the Supervisory Council decided to keep the key interest rate unchanged at 1.75%. The intensity of the monetary stimulus will not decrease in 2016, and the monetary conditions will remain stimulating over two years ahead.