FLASH
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The Governor of the Bank of Albania, Gent Sejko, has spoken about the conflict in the Middle East. He said that the war poses a risk to the Albanian economy and that it is difficult to predict the extent of its impact.
According to him, despite external uncertainties, the Albanian economy has shown positive performance until the first quarter of 2026. In this context, the Bank of Albania has decided to keep the key interest rate unchanged, aiming to maintain economic stability.
Sejko emphasized that inflation remains low, while financial markets appear stable and lending to the private sector continues to grow. He underlined that monetary policy has made an important contribution to these developments.
The Governor added that expectations for the economy remain positive for the coming years, with stable growth and a gradual return of inflation to target during 2026.
However, he warned that the conflict in the Middle East remains a significant source of risk for the global and Albanian economy, which requires increased vigilance from financial institutions.
"The Supervisory Council of the Bank of Albania decided to keep the monetary policy unchanged. There has been a positive performance of the Albanian economy until the first quarter of 2026, while this year the main objective will be inflation. Inflation remains at low levels, while financial markets appear calm, and credit in the private sector continues to record stable growth. The monetary policy of the Bank of Albania has also had a positive contribution.
The country's development trends remain positive and are expected to continue in the future. The economy is expected to grow at a solid pace in the next two years, while inflation is expected to gradually return to target during 2026.
The conflict in the Middle East constitutes a significant source of risk for the global economy and for the Albanian economy in the future, a risk which is being assessed with an acceptable degree of certainty at the current moment.
"In these circumstances, the Supervisory Council decided to keep the monetary policy stance unchanged, increasing vigilance towards global developments ," he said.
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