Quarterly Monetary Policy Report, 2017/IV

The information analysed in this Report shows economic activity at home continued to improve over the second and third quarters, driven by both domestic and foreign demand. Inflation declined over the third quarter and inflationary pressures were weak, suggesting the economy continues to operate below its potential. The accommodative monetary policy has contributed to maintaining low interest rates, favouring credit growth. The Bank of Albania deems that economic and financial developments will remain positive, and the monetary stimulus will continue in the next year. The economy is expected to return to equilibrium and inflation to target within the first half of 2019.