NO! Bank of Albania is not lowering further the Interest Rates
Questions and answers press conference , October 30, 2013
PUBLICATION DATE 01/11/2013
Question – I have a question that probably sounds a bit political but actually has more to do with households . Political movements that have occurred in recent days have brought a large turnover of government employees from workplaces , will this affect the increase of bad loans and reduce domestic consumption economy instead ?
Answer – This item is not part of the evidence that we receive .
Question – Although inflation in the third quarter was below the lower range of the Bank of Albania and , although inflation expectations are low again , you decided not to put down around the base further . Does it reflect the loss of confidence that domestic demand in this kind of situation can be further encouraged with monetary incentives are there any other shyness , p.sh promoting informal money market , by further reducing the price of money ? What are the main causes that led to this decision , although the main, it is inflation and inflation expectations , will probably justify another intervention ?
Answer – To answer this question would have to reread the statement once all of the Supervisory Board , however we Albanians prefer to hear things directly and not read. However , to make a meeting , I would say that the stimulus provided by the Bank of Albania has been comprehensive , not only in money but in context it makropudencës , and our expectations are that this incentive will be implemented , taking into consider a better functioning of the transmission mechanism . Given our expectations for a better economic growth next year , what is important is that we should give all the necessary positive incentives to increase the credibility of our economy and also to highlight the potential Albanian economic markets interior and exterior . It is very important to establish trust needed to ensure continued long-term growth . In this context , it is necessary to highlight the reality of our economy and its economic potential .
It is important that the Bank of Albania , in a range of 360 degrees , to assess the situation with foresight , has judged that the best incentive is to stay at this level rate to give a boost to domestic demand growth . Let us not forget that the current base interest rate of 3.5 % , in a macroeconomic context , means that we are very close to zero value in real terms . This means that the stimulus was given more than enough mass . In the judgment of the Bank of Albania , stay at low levels is necessary to anchor better , not only inflation but also trends for economic development . The attitude of today Factors other than the present, short bow looks in monetary policy .