The Albanian central bank's supervisory council decided to reduce the policy rate by 25 basis points to 1.00%, saying downward pressure on inflation has intensified with the appreciation of the country's lek currency.
Banka e Shqipërisë also reduced the overnight deposit facility rate by 15 basis points to 0.10% and lowered the overnight lending facility rate by 35 basis points to 1.90%.
The central bank said it will start purchasing foreign currency to eliminate a temporary excess and slow the further appreciation of the lek.
"The development trend is expected to be positive, characterized by further economic growth, gradual convergence of the economy towards the equilibrium, and progressive build-up of domestic inflationary pressures," central bank Governor Gent Sejko said in a statement.
