Interest rate for treasury bills at 2% in latest auction

The interest rates of treasury bills recorded once again a slight increase in auctions held on Tuesday.

According to data from the Bank of Albania, 12-month maturity bills were sold at a weighted average interest rate of 2%, from 1.95% in the previous auction.

This level seems to indicate a new kind of balance that the market has found after a decline that lasted nearly four months at the beginning of this year.

Market demand for these instruments appears to be over the needs of the government.

From 9.7 billion of government bills announced for funding, the total demand in auctions amounted to ALL 11.2 billion.

The level of 2%, for the moment, seems that can guarantee a reasonable return to investors, at a time when interest rates in financial markets are still near the lowest historical values.

Experts expect that interest rates of bills will remain low during the year, reflecting an alleviating monetary policy.

Interest rates of bills at these levels do not exert pressure for big changes in the interest rates of deposits and bank loans, which are expected to remain low even during 2017.

However, the corrective cycle of the Albanian economy will gradually prompt the trend of interest rates in the financial market to change, most probably, starting from next year.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.