Albania Interest Rate

The Bank of Albania kept its policy rate unchanged at 2.5% during its August 6 policy meeting, following a 25 basis-point cut in July. The overnight lending and deposit rates were also held steady at 3.5% and 1.5%, respectively. Annual inflation ticked up to 2.4% in June, the highest since February 2024, but remained below the central bank’s 3% target for 2025. Meanwhile, GDP grew 3.4% year-on-year in Q1 2025, marking the slowest pace since Q4 2023. The decision suggests a wait-and-see approach as policymakers assess the balance between inflation and economic growth.