The Supervisory Council of the Bank of Albania left the base rate at 2.5 percent, judging the current stance sufficient to support solid growth while guiding inflation back to target during 2026 amid heightened geopolitical risks. After a 25 bp cut in July 2025 the rate has been held steady. The overnight deposit and lending facility rates remain at 1.5 percent and 3.5 percent, keeping liquidity conditions easy. Consumer-price inflation averaged 2.4 percent in January–February, still below the 3 percent target, while GDP is estimated to have expanded by about 3.7 percent in 2025; credit to the private sector grew nearly 14 percent in the first two months of 2026 against a backdrop of ample liquidity and historically low unemployment of 8.3 percent. A stronger lek and muted imported inflation continue to offset domestic price pressures, aided by rising tourism receipts. The Council highlighted the surge in global oil prices linked to the Middle-East conflict as a key external risk and pledged to react “in a timely, appropriate and forceful manner” should supply shocks threaten price stability.
Bank of Albania 2026-03-25
Bank of Albania keeps base rate unchanged at 2.5%
Bank of Albania held the policy rate at 2.5 percent, with overnight deposit and lending facility rates unchanged at 1.5 percent and 3.5 percent, judging the stance adequate to sustain growth and return inflation to the 3 percent target by 2026. The Supervisory Council flagged surging oil prices tied to Middle-East tensions as a primary external risk and said it will respond swiftly if supply shocks threaten price stability.