The Bank of Albania kept its benchmark interest rate unchanged at 2.5% at its November 2026 meeting, as policymakers considered the current monetary stance appropriate amid solid economic growth and inflation close to target. Inflation eased to 2.9% in September, down from 3.2% in August, following a slowdown in rental price increases, although higher agricultural and food prices continued to exert pressure. Economic activity remained robust, with GDP growing 3.6% in the first half of 2026, supported by consumption, investment, exports and rising employment and wages. The central bank expects inflation to temporarily exceed its 3% target due to higher energy prices and external inflationary pressures, before returning to target in 2028.
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