Albania Interest Rate

Albania’s central bank kept its benchmark interest rate steady at 2.75% in May, citing stable inflation and balanced economic conditions. The overnight lending and deposit rates also remained unchanged at 3.75% and 1.75%, respectively. Inflation averaged 2% in Q1 2025, below the 3% target, due to lower import costs, strong domestic supply, and moderate demand pressures. The bank expects inflation to gradually rise to target by mid-2026, supported by a stable exchange rate and declining global price pressures. Economic growth remains strong, fueled by consumption, investment, and tourism.