Gov’t securities: Beginning of 2018 marks a “normalization” of interest rates
The primary treasury bills market of the Albanian government is showing a stabilization trend at the beginning of this year.
At the auction held Tuesday, 12-month bonds were issued at a weighted average rate of 2.55%.
Interest rates showed once again a slight decline, just as it happened in previous auctions.
The financial market at the beginning of the year seems rather liquid and demand in auctions amounted to over ALL 13 billion, from ALL 9.2 billion, which was the value of the bonds issued for sale by the Ministry of Finance.
The growth of market demand explains the curbing of interest rate growth. During the second half of 2017, auctions of bonds and treasury bills grew at a slower, but steady pace.
At present, curbing the growth of bond interest rates helps maintain low interest rates in financial markets.
The banking system, which has a high liquidity, does not have much pressure to increase the interest rates on deposits and loans.
This trend reflects the signals given by the Bank of Albania in the market, which has announced the continuation of the easing monetary policy for 2018.
According to the Central Bank, the negative output gap in the economy has not yet been closed, while inflation has not yet approached the target of 3%.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.