The Albanian economy is not worried by the increase in prices

The Bank of Albania estimates that the Albanian economy is ending this year stabilized and unconcerned by the increase in prices.

The Bank's Supervisory Council has decided to keep the base interest rate for the lek unchanged at 2.75%. During this year, the base rate was cut twice, first in July and then in November, in an effort to stimulate lending and thus the economy.

But will it have an impact on the economy and on citizens and businesses? The base interest rate becomes the determining factor for the interest on loans in lek and deposits in this currency, as well as the interest on government securities, treasury bills and bonds. By not changing the basic rate, it is not expected that there will be a change in their interests.

But what are the current interest rates in the banking system? At the end of this year, the average interest rate of the entire loan portfolio stands at 4.56%. Meanwhile, the interest rates of new deposits in Lek have decreased to 1.94%.

During this year, even the central banks in the world have reduced interest rates, as they have considered the risk of inflation or, in other words, the increase in prices, to be mitigated.

A week ago, the European Central Bank lowered the basic interest rate for the euro to 3%, which becomes the determining factor for loans in this currency that are granted in Albania. On the other hand, in September, the Federal Reserve in the United States of America also lowered the interest rate for the dollar to 4.8%. But how does the Bank of Albania assess the state of the economy and especially the fluctuations of the euro in the exchange rate, which have been sensitive during this year. Let's follow what the governor Gent Sejko said. (A2 Televizion)