PRESS RELEASE
Second Deputy Governor, Ms Natasha Ahmetaj, addressed the presentation of the International Monetary Fund Report

On 10 October 2023, the IMF Report on the World Economic Outlook (WEO) was presented at the Bank of Albania.

This Report presents the global economic developments in the short run and medium term, based on the economic analyses conducted by IMF staff economists. Inflation and monetary policy are on the focus of this Report. In addition, the IMF introduces its researches and latest assessments regarding the role of the expectation formation process on the current high-inflation environment and its impact on monetary policy.

According to the report, the global economy continues to recover at a slow pace from the blows of the pandemic, Russia’s invasion of Ukraine, and the cost-of-living crises.  In retrospect, the resilience has been remarkable. Economic growth in the future is expected to slow from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024.

The Second Deputy Governor of the Bank of Albania, Ms Natasha Ahmetaj, delivered the welcoming address for the participants in this meeting. As regards the main issues under observation, Ms Ahmetaj said that as prices rose rapidly, almost all central banks launched a fast monetary policy normalisation course in order to subside inflation, and prevent the corrosion of the purchasing power of households and monetary and financial instability. She emphasized that the interest rates of systemically-important central banks are the ones that, for the most part, determine the global monetary policy trends.

In respect to Albania, Ms Ahmetaj added that the quick response of the monetary policy is a promising sign, at least as regards the deceleration of inflation, which is following a downward trajectory. However, given that inflation remains high, due to tightened labour markets and an upward shift of inflationary expectations, the main task of the monetary policy is not complete yet.

Furthermore, Ms. Ahmetaj underlined that credibility is a central bank’ greatest treasure. As such, it must be meticulously observed in both favourable and unfavourable times, through a coherent and stable monetary policy action and transparent communication.

“In the past two decades, the Bank of Albania has been fully engaged in implementing its legal mandate of price stability; it has adopted a contemporary monetary policy framework, which is an effective policy instrument, as well as a communication strategy drafted meticulously” - said Deputy Governor Ahmetaj.

In conclusion, she thanked the participants present in this activity and invited them to further contribute with their discussions and disseminate the conclusions of this Report.