Global Courant 2023-05-31 13:41:32
Governor Sejko: The geopolitical environment changed unexpectedly at the beginning of 2022. This attack brought price increases threatening financial stability. Albania was no exception to these trends. Following the increase in the standard of living and general rates, inflation rose to the level of 6.7%, in average annual terms. This was driven by foreign prices and domestic inflation. This showed a broad base and resulted in an increase in core inflation for 2022.
In this new economic environment, the Bank started the normalization process which was realized through the increase of the interest rate to the level of 2.70%, currently it is 3%. I find it appropriate to emphasize that the stance of our monetary policy has been careful to have as little impact on financial stability as possible. The speed of normalization in Albania has been lower than that followed by our international partners.
Monetary policy has had a good follow-up. It still follows the credit and deposit market. The flow of loans continues to remain positive. The loan volume increased by 12.3% in 2022. The financial stability of the banking sector created premises for support. The effects are visible in curbing inflation, which slowed down by the end of 2022 and in March 2023. In the absence of our actions, inflation would be higher. On the other hand, the Albanian economy maintained the growth trend in production and wages. Growth was relatively high creating the post-pandemic recovery.
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