Monetary Policy Report Q1 - 2013

Albania’s economy weakened over the past year, reflecting the overall uncertainty surrounding the internal and external environment. Despite the unfavourable developments, Albania’s main indicators of internal and external balances remained within the sound parameters. Consumer proces increased by 2.5% on average, in 2013 Q1. Inflation continued to reflect the weak aggregate demand-side pressures and the lack of supply-side shocks. Based on the economic and monetary Outlook, the Supervisory Council of the Bank of Albania decided, in its meeting of 30 April 2013, to keep the key interest rate unchanged at 3.75%. The low annual inflation rate and the projection for a similar trend in the relevant horizon of the monetary policy, condition the continuation of the monetary stimulus in the next quarters.