BoA increases interest rate to slow crediting, prevent higher inflation

TIRANA, Nov. 30 – The central Bank of Albania increased the interest rate on Thursday by 0.25 percent in an effort to slow down crediting and to prevent higher inflation in the country, the bank’s governor, Ardian Fullani, said. Thus, the basic interest rate increases from 5.25 percent to 5.5 percent. Fullani said that despite a recent slowdown of crediting from the commercial banks, the rate was still high, which worries financial authorities. This latest move aims to soften the effects of such moves. It would also help the financial authorities to keep inflation under control, as it is under the pressure of rate increase. Authorities have said inflation should be between 2 and 4 percent. In October, the annual inflation was 2.2 percent. Fullani added, however, that the general macro-economic situation was healthy and stable.