The Bank of Albania held its policy rate at 1 percent during its June meeting, saying that the current monetary policy stance is adequate to guarantee return of inflation to the target over a medium-term horizon. The Bank noted that the inflation rate in Albania increased in May (1.5 percent from 1.4 percent in April), mainly due to higher food and oil prices. Policymakers also added that the Albanian economy continued to grow during the first two quarters of 2019, although at a slower pace compared to the previous year. The bank's overnight deposit and overnight loan rates were also kept at 0.1 percent and 1.9 percent respectively. Interest Rate in Albania averaged 4.42 percent from 2001 until 2019, reaching an all time high of 8.50 percent in April of 2002 and a record low of 1 percent in June of 2018.
Interest Rate in Albania is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Albania to stand at 1.00 in 12 months time. In the long-term, the Albania Interest Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.