25.03.202616:11:39UTC+00Albania Keeps Key Policy Rate at 2.5%

The Bank of Albania left its key policy rate unchanged at 2.5% in March 2026, marking a fifth consecutive meeting without a change. The overnight lending and deposit rates were also maintained at 3.5% and 1.5%, respectively.

Consumer price inflation averaged 2.4% in January and February, remaining below the 3% target. Inflationary pressures were largely contained, with notable increases mainly observed in rent prices.

The economy grew by 3.7% over the past year, supported by solid increases in household consumption, private investment, and services exports. The unemployment rate stood at 8.3% in the fourth quarter of 2025, close to its historical lows. Nonetheless, labor market conditions remain tight, reflecting strong demand from businesses alongside a limited supply of workers.

The Council noted that recent economic and financial developments have broadly met expectations and are consistent with a positive growth trajectory. At the same time, it stressed that heightened uncertainty stemming from ongoing geopolitical tensions could generate new supply shocks, posing risks to both inflation and future economic growth.