Quarterly Monetary Policy Report, 2022/III

The new information analysed suggests that inflationary pressures are broader and stronger than our previous estimations. This judgement reflects the rapid surging prices in global markets, coupled with the strong and stable demand for goods and services in Albania. The external environment remains challenging. Against this backdrop, the Albanian economy has performed in a solid manner, driven by the expansion in households’ consumption, investments of private sector, and in the exports of goods and services. The Supervisory Council decided to continue the normalisation process of monetary policy, through the increase of the policy rate by 0. 5 percentage points to 1.75%, from 1.25%. This normalisation is necessary to control inflationary pressures and for inflation to converge towards the target, within the medium-term horizon.