Quarterly Monetary Policy Report, 2020/IV

The economic activity improved during the summer months, following a sharp decline in the second quarter. This recovery reflected the easing of social distancing measures and the support provided by the comprehensive fiscal, monetary and macroprudential stimulus. Despite the positive trends, the prospect of economic recovery in the future remains fragile and surrounded by many uncertainties. The Supervisory Council of the Bank of Albania considers that the current monetary policy stance remains appropriate. The Supervisory Council decided to keep the policy interest rate unchanged at 0.50%. Monetary conditions and low interest rates provide the right support for economic growth and the return of inflation to target by 2022.