How will the reduction of the base rate affect the economy? - Muço: Cheaper borrowing will stimulate spending and investments
The Bank of Albania has decided to lower the base interest rate from 3% to 2.75%. But how is this expected to affect the economy?
Expert Klodian Muço said that the reduction of the basic interest rate will affect the growth of lending to the economy, creating a favorable environment for loans to individuals and businesses.
"It is in coherence with the recent economic performance, specifically inflation is moving towards stabilization, in those numbers within the expectations of the Bank of Albania. The same thing, that is, the same type of policy is being followed by the European Central Bank, so this measure is quite normal. Of course, the reduction of the basic interest rate by the Bank of Albania is automatically reflected in the cost of loans, it is automatically reflected in lending in the economy, it is automatically reflected in the part of the economy in the complex, or liquidity, the form of use of liquidity in the economy. So it is seen as a positive aspect, either in the lending part, or in easing the burden of all those who currently have a loan and others."
The Bank of Albania's decision to lower the rate is often a response to economic conditions, such as low inflation, and aims to provide an environment that encourages financial activity.
When the Bank of Albania lowers the base interest rate, it aims to stimulate the country's economy by making borrowing cheaper and thus encouraging spending and investment.
Poll
Anti-informality, 9,000 businesses increase salaries - Revenues increase by 13 million euros. Over 37 thousand other targeted subjects
Since the launch of the anti-informality action, nearly 9 thousand businesses in the country have reacted by increasing the declaration of wages for their......
About 3.2% of the population has never attended school/ Gjirokastra and Lezha with the highest number of uneducated individuals
According to the latest data from the 2023 Census, about 3.2% of the total population in Albania has never attended school. "Scan Intel" has analyzed these......
Anti-informality action against bakeries - Controls in 172 entities, 31 of them are caught in violation
The tax administration has launched an action on the ground focused on bakeries in order to raise awareness and fulfill tax obligations. Referring to the......
Roofs in the village, without a building permit - The procedures for development and construction on state land are also changing
The government has made changes to the development and construction permit procedures for state-owned lands, as well as added categories of interventions......
USA, Kamala Harris accepts defeat - the Vice President emphasized the commitment to a peaceful transition of power
US Vice President Kamala Harris vowed to continue fighting for the ideals that fueled her presidential campaign, acknowledging President-elect Donald......
"Global emissions at record levels in 2023" - OBM: Temperatures could rise by 2.8 degrees C by the end of the century
The concentration of planet-warming pollutants clogging the atmosphere has reached record levels in 2023, the World Meteorological Organization (WMO)......
Negotiations and chapter 9/ AMF expands cooperation with European regulators - Signed an agreement with the National Bank of Hungary!
The Financial Supervisory Authority (AMF) and the National Bank of Hungary (MNB) signed a Memorandum of Understanding, within the framework of the......
Elections 2025, the government provides additional funds to the CEC - 20 million ALL to cover preparatory expenses
The Council of Ministers has approved an additional fund of 20 million and 900 thousand ALL for the Central Election Commission. This additional fund will......
