Economic growth slowed down in second semester: BoA’s Governor Sejko
Albania’s economic growth may slow down in the second half of the year.
Governor of the Bank of Albania Gent Sejko said on Wednesday that the economy has continued to grow, but according to indirect indicators this growth may have been somewhat lower compared to the 4% level of the first two quarters.
The Bank of Albania remains optimistic about the recovery of economic growth, but however it has extended the projection to return to the inflation target to the first half of 2019.
Sejko said the sluggish inflation may be explained by the continued negative output gap, but also with weak external inflationary pressures and with strong Lek’s position in the exchange rate.
In the last decision-making for 2017, the Supervisory Council of the Bank of Albania kept the key interest rate unchanged at 1.25%.
However, the Governor reiterated his willingness to further lower the key interest rate if factors that could hinder the return of inflation to the target will materialize.
The Bank of Albania has oriented the markets for the continuation of the current monetary policy course for the coming year, which means that the period of low interest rates will continue in 2018 as well.
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