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Home ATTUALITA

Bank of Albania raises interest rates, Sejko: Prices may stabilize by the end of the year

by imkadmin
Mar 23, 2022
in ATTUALITA
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Bank of Albania raises interest rates, Sejko: Prices may stabilize by the end of the year
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The Bank of Albania increased the interest rates by 0.5%, sending to 1% this very important indicator in the economy.

The Governor of the Bank of Albania said that high inflation rates have made it necessary to intervene in monetary policy.
The increase in interest rates makes the cost of credit higher, while on the other hand it increases deposit rates.

In these conditions, Governor Sejko said that prices are expected to return to stability within the third quarter of this year, while prices in international markets will continue to remain high.

Interest rates are one of the main policies of the Bank of Albania to amortize the high inflation that has been going on for three months in the country, since December last year, while the Bank of America has done the same.

Supply risks coming from international markets also have a great impact on our country as we are a country that has a high trade deficit and imports a lot.

After the pandemic all the economies around the world experienced an increase in demand, while the hit supply failed to catch up. All this has led to an inflationary wave, which if it gets out of control risks sending economies into recession.

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