Quarterly Monetary Policy Report, 2018/II

The Albanian economy continues to maintain a positive development trend. Economic activity continues to expand and inflation has been upward, whereas monetary and financial conditions remain overall adequate for achieving our inflation target, in the medium-term horizon.

The Bank of Albania expects inflation to converge toward our target within the next year. The balance of risks to inflation has shifted further to the downside. In comparison to our previous assessments, the convergence of inflation to target will require a more accommodative monetary policy stance in the medium term. Based on the available information, the Bank of Albania deems that the intensity of the monetary stimulus will not diminish before the second quarter of 2019.