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Tirana, 1 November 2007 (ANEnews) – Minister of Finance Ridvan Bode said yesterday that the actions taken by the Bank of Albania to counterbalance inflation would not have an immediate effect. Bode evaluated the Bank’s actions as being accurate but added that as long as the inflation has not been caused by the demand, the usage of traditional elements to block the inflation pressure, such as the increase of interest rates are not expected to bring any immediate improvement. Bode also warned that the increased interest rate could raise the business costs.

The Minister made this comments at the second roundtable of the
business with the Albanian Government organized by The Economist.
Experts working for The Economist said that the perspective of economic
developments in Albania for the next five years is an optimistic one.
With regard to the flat tax, they reportedly warned that it has caused
problems in several countries a few years after being applied.