What is Monetary Policy?

Bank of Albania is the sole institution in the Republic of Albania responsible for designing, compiling, approving and implementing the monetary policy.  Monetary policy is the set of principles, measures and instruments, through which the central bank intervenes in the financial markets and in the economy, to achieve its price stability objective.

 The Monetary Policy is designed in the view of achieving the main objective of the Bank of Albania "to achieve and maintain price stability". It includes the intervention and/or position of the Bank of Albania towards financial markets to achieve its main objective.

The monetary policy summarises the respective legal framework (link), the theoretical background employed for modelling, the operational target of monetary policy and the set of monetary instruments used to finalize the monetary policy goals.