CB keeps interest rate unchanged

Albania’s central bank has kept its key interest rate unchanged at 2.5% after inflation rose in the second quarter.

The Bank of Albania said current policy was still suitable to bring inflation back towards its target over the medium term.

Governor Gent Sejko said average consumer inflation reached 2.9% in April and May, up from 2.5% in the first quarter.

The increase was driven mainly by higher fuel prices, as oil became more expensive in international markets.

Prices also rose for unprocessed food and some energy-intensive services, while rent inflation fell.

The central bank said the economy continued to grow and financial markets remained stable.