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Albanian central bank lowers key interest rate

Albania’s central bank said it decided to cut its key interest rate to a record low of 0.5% from 1%, aiming to mitigate the impact of the coronavirus pandemic on the countryʼs economic and financial health, regional portal SeeNews says. 

Photo by Zysko Sergii/Shutterstock.com

The interest rate corridor in the interbank money market will be revised down to 0.9% from 1.9% for the overnight lending rate, while the interest for the overnight deposit rate remained unchanged at 0.1%, the Bank of Albania said in a statement, following a meeting of its rate-setting supervisory council.

The spread of the coronavirus pandemic in Albania poses a challenge to the economy and financial sector, central bank Governor Gent Sejko said in the statement.

According to Sejko, the central bank has increased its operational capacity to guarantee the supply of the economy with currency and banknotes, as well as to ensure the smooth functioning of the electronic payment system, SeeNews reports.