Bank of Albania reports IMF staff mission backed its monetary policy stance and noted banking sector resilience

The Bank of Albania published an account of an International Monetary Fund staff visit held from 28 May to 2 June 2026, covering the macroeconomic outlook, the monetary policy stance and financial stability issues. The main message from the discussions was that Albania’s economy remains resilient, supported by economic activity, labor market conditions and favorable financial conditions, while the IMF mission viewed the Bank of Albania’s monetary policy stance as appropriate for safeguarding price stability. Governor Gent Sejko presented recent developments in prices, the financial and banking system, and the outlook for key economic indicators, alongside the Bank of Albania’s data-dependent approach to returning inflation to target. The IMF mission noted that inflation has been affected by higher energy prices and that inflation expectations require continued monitoring. On the exchange rate, it confirmed that the lek’s appreciation reflects structural improvements in the real economy and that a free exchange rate regime is beneficial. For the banking system, the mission assessed the sector as resilient, with strong capital and liquidity, good loan portfolio quality and solid financial performance, and welcomed further work on macroprudential tools and alignment of the regulatory framework with European Union standards. The discussions also covered longer-term challenges including demographics, productivity and European integration. The Bank of Albania reaffirmed its commitment to maintaining price and financial stability and to continuing close cooperation with the IMF.