Monetary policy report 2012 Q3

In the context of the difficult situation in the global economy, especially in the euro area, the Albanian economy has faced a challenging world environment during the first three quarters of 2012. Despite the negative impact on economic growth rates, Albania’s financial and macroeconomic performance was stable. Annualised average inflation for consumer prices stood at 2.7% in the third quarter, recording a gradual increase throughout the year. The economic and monetary analysis confirms the presence of weak inflationary pressures from the demand side. In the presence of an economic landscape characterized by the slow performance, actual and expected, of inflation and aggregate demand, the monetary policy intensified its stimulating nature in the third quarter. Expected developments suggest that inflationary pressures will remain low.