Albania hikes key interest rate
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The Bank of Albania raised its key policy rate by 50 basis points to 1% during its March meeting, as it expects the surging global inflation to drive up the local consumer prices.
Albania's consumer price inflation increased to 3.9% in February, higher than the central bank's target of 3%.
It is expected to remain high for the rest of the year and in 2023, hurting the purchasing power of households and slowing down economic growth.
However, the economy is expected to continue its growth in 2022 based on the vastness and strength of growth sources, assuming that the Russia-Ukraine conflict will not evolve any further.
At the same time, the overnight lending facility rate was raised to 1.9% from 0.9% and the overnight deposit facility was kept unchanged at 0.1%.
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