Treasury bills’ interest rate at 2.14%: BoA

Treasury bills’ interests rose again slightly at Tuesday’s auction.

According to the Bank of Albania data, 12-month maturity bills were issued at a weighted average interest rate of 2.14%, from 2.10% that was in the previous auction.

The market demand was again high: a total of ALL 8.8 billion were offered for ALL 8.2 billion announced by the government for funding.

In recent months, the market of government debt instruments is showing a stable performance, after strong fluctuations of interest rates since the middle of last year.

The 12-month bills are now stationed close to 2%, which seems a point of equilibrium.

This level provides a reasonable return for investors, while yet being a favorable borrowing rate for the government as well.

On the other hand, this level of yield does not prompt significant pressures for the increase of the interest rates on deposits or bank loans, favoring the continued low interest rates in the economy.

The basic scenario for experts is the sustainability of bills’ interest rates at similar levels, with no major fluctuations, in reflection of the alleviating monetary policy.

A sound and stable rise in interest rates in financial markets may be more likely to occur from next year when inflation is expected to reach the Central Bank target, which may dictate a new one in the monetary policy course.

SCAN

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