PRESS RELEASE
Bank of Albania organises the 16th SEE Economic Research Workshop

On 5-6 December 2022, the Bank of Albania organizes the 16th SEE Economic Research Workshop. This workshop aims at providing a discussion forum on the research conducted at the Bank of Albania in 2022, and promoting the exchange of views among researchers from the Bank of Albania, other central bankers, academia and scholars, as well as with policy-makers in the region and beyond. It addresses the results of scientific research on issues related to the activity of central banks.

Research in the area of monetary policy, financial stability and banking supervision has always dominated the topics of our workshop. Therefore, additionally to the traditional issues of monetary policy and central banking, an exceptional attention during the workshop will be given to climate change related risks and green finance - which have turned into the “leitmotiv” in the communications of many central banks, and European and international institutions, - digitalization of financial services and technological improvements, and their implications for central bank objectives.

During the two-day proceedings, there will be 35 research works presented, 11 of which are authored from Bank of Albania’s researchers.

The Governor of the Bank of Albania, Mr Gent Sejko and the Ambassador of Switzerland in Albania H.E. Ms Ruth Huber greeted the proceedings of this workshop.

In his welcome remarks, Governor Sejko stated that the remit of this activity is to present, discuss, and exchange the research work among colleagues from homologue institutions working on the same topics and dealing with similar challenges to the Bank of Albania. This workshop will serve to better understand the origin and complexity of challenges we are facing, and design the right policies to address them accordingly.  

In this context, Mr Sejko pointed out  that, over the years, the workshop of the Bank of Albania has changed and evolved in many different ways, but so did the challenges and opportunities faced by us. This event takes place at a particularly difficult time: while we are still facing the complexities of the gradual phasing out of the policies implemented during the pandemic, new risks have dramatically taken centre stage.

Governor Sejko emphasized that Albania is now facing the challenges arising from the surge in international prices of energy, tighter global financial conditions, which are likely to persist and the economic slowdown in Europe. Inflation reached at 8.3% in October, continuing to remain the main threat to the macroeconomic stability and to both the stable and long-term growth of Albania.

In addition, the Governor mentioned several studies conducted in the monetary policy field, which have documented the real risk that high and persistent inflation as well as inflationary pressures pose on the economy and households.

He added that recent research and analysis of the Bank of Albania show that under current conditions, the only responsible policy for the central bank is to respond by increasing the policy rate and reinforcing its commitment to price stability. This course of action will create the necessary monetary conditions to control inflation and inflation expectations, and will eventually help return inflation to the target within a reasonable time horizon.

Most importantly, BoA's projections, which benefit from the same models and research analysis, suggest that the current round of policy rate hikes will not be recessionary The Albanian economy will continue to grow in the medium-term horizon.

Concluding, the Governor thanked the Swiss Government and the State Secretariat for Economic Affairs (SECO) for their continuous support of research activity at the Bank of Albania.

He commended this decade-long cooperation to build and improve research activity to the best international standards and make it practical and useful in the context of the central bank.

 Governor Sejko thanked the speakers, discussants, the chairpersons, as well as the Bank of Albania’s staff for dedicating their time and efforts to this important activity.

• Governor Sejko: Welcome Remarks at the 16th SEE Economic Research Workshop