Quarterly Monetary Policy Report, 2023/III

Inflation came down in the second quarter 2023, in reflection of the decreased external pressures, the appreciated exchange rate and the reduced inflation expectations. In parallel, the economic activity in the country has been expanding. The normalization of monetary policy the stance has had a positive role in this regard, in helping to keep domestic inflationary pressures under control and enabling the financial markets function smoothly. Based on current trends and their supporting factors, the Albanian economy is expected to continue growing in the coming years, while inflation is expected to return to the target by the middle of next year. In these circumstances, the Supervisory Council decided to keep the monetary policy stance unchanged with the approval of this Report.