Monetary Policy Report Q3 - 2014

Recent data on the real sector show economic activity decelerated in Albania, however this deceleration is considered to be temporary. The Bank of Albania expects the performance of the economy to improve, which would, in turn, create adequate premises for inflation to return to target in the medium term. Underpinned by stimulating monetary conditions, the expansion of consumption and private investment is expected to be the main driver of economic growth and facilitate the return of the economy to equilibrium. In this context, the current monetary policy stance and the conditions it generates are appropriate. They will enable the return of inflation to target and of the economy to equilibrium within a medium-term horizon, hence minimising unwanted pressures on financial system indicators.