The retreat of the inflation wave is good news in general and for borrowers of lek loans in particular. After the easing of interest rates at the end of last November, with the curbing of inflation, the conditions for further reduction of the base rate may soon be ripe.
"I have the impression that with such low inflation, even below the Bank of Albania's target, the Supervisory Council's decision to lower the base interest rate again is not far off," economic expert Klodian Muço told A2 CNN.
And at a time when loans in lek would become cheaper, civil servants also stand to gain from the easing of inflation. Starting next year, their salaries will be indexed depending on the inflation rate.
"If we want to maintain the standard of living, then we will also have to index salaries. At this rate, they increase slightly, but the effect of inflation is still amortized," added Muço.
The curbing of the price crisis among the elderly has the opposite effect. Their pensions will increase less in October as a result of falling inflation.
"With this rate, they receive less money. However, there is a problem here. They should not receive indexation based on inflation in food and beverages, but based on the performance of this indicator in the consumer basket," Muço underlined.
The Bank of Albania predicts that this year will create a positive growth environment for the country's economy, with low inflation, a healthy banking sector and significant development of payment systems. (A2 Televizion)
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