BoA hikes interest rates by a quarter point
Banking & Finance, Economy Friday, July 14th, 2006Tirana, 13 July (AENews) – Bank of Albania hiked the base interest rate by 0.25 percent, the first step after 15 months of neutrality.
BoA uses the Repurchasing Agreement (REPO) as it primarily tool against inflation. REPO interest rate reached 5.25% after the decision by the Central Bank for the first time since November 2004.
BoA president Mr. Adrian Fullani declared last week that his concerned about inflationary risk created by a handicap in public spending during the first six months of this year. BoA is concerned also by the situation of non attractive interest for the local currency Lek compared to the interest of US dollar.
Government of Albania had created the first ever state surplus by keeping public spending in a very low level.
Short URL: http://www.albanianeconomy.com/news/?p=159
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on Jul 14 2006. Filed under Banking & Finance, Economy.
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