FX.co ★ Albania Leaves Key Rate Unchanged

The Bank of Albania kept its benchmark interest rate unchanged at 2.5% at its October 2026 meeting, with policymakers judging that the current monetary stance remains appropriate to support inflation’s return to target. Inflation averaged 3.3% in July–August, driven mainly by higher fuel and unprocessed food prices, as global commodity costs increased amid heightened geopolitical tensions in the Middle East. At the same time, core and domestic inflation eased, although tight labor market conditions and rapid wage growth continued to pose upside risks over the medium term. Economic activity remained robust, expanding by 3.6% year-on-year in the second quarter, supported by both consumption and investment. The central bank expects inflation to rise moderately over the next two quarters before gradually converging toward its target over the medium term. Future policy decisions will depend on incoming inflation data, fiscal policy, and exchange-rate developments.