The Supervisory Council of the Bank of Albania left the base rate at 2.5 percent and held the overnight deposit and lending facility rates at 1.5 percent and 3.5 percent, respectively, stating that prevailing economic and monetary conditions justify an unchanged stance as inflation remains subdued and activity continues to expand. The base rate has been steady at 2.5 percent since a 25 bp cut in July 2025. The corridor therefore stays at 1.5–3.5 percent. Consumer price inflation averaged 2.4 percent in January–February 2026, below the 3 percent target, while GDP is estimated to have grown about 3.7 percent in 2025 and private-sector credit rose nearly 14 percent year on year in the first two months of 2026. Low imported inflation, aided by a stronger lek, continues to damp price pressures, though the Council notes that Middle East geopolitical tensions pose upside risks to global energy prices. The Council reiterated that it will monitor conditions closely and stands ready to act should threats to price stability materialise.
Bank of Albania 2026-05-06
Bank of Albania keeps base rate unchanged at 2.5%
Bank of Albania left the base rate at 2.5 %, maintaining the 1.5 %–3.5 % corridor, as January–February consumer inflation averaged 2.4 % and activity stayed robust. The Council sees low imported inflation and a stronger lek containing price pressures but warns Middle East energy risks could threaten price stability and says it stands ready to act.