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Reverse repos foster economy near targeted inflation rate

Reverse repos foster economy near targeted inflation rate

Current Actual Inflation Rate (annual change in the Consumer Price Index) of Albanian Economy appears 2.2% compared to 1.3% last year holding a healthy constant headed near targeted inflation pointed by Bank of Albania on average and long terms at 3.0%.

As the main tool of Monetary Policy in achieving this target, to allow positive interest rate for fueling investment and managing liquidity, Bank recently released reverse Repos/ Repurchase agreements on a rate 1.25% with maturity period seven days. Encouraged by actual development stage, agility of bank products and current needs as small and emerging economy this target is consistent to ease of Credit Getting 65 on Rank for Albania and Bosnia and Herzegovina, 55 and 50 for Croatia and Greece, according to World Bank on a scale of 0-100 frontier.

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Companied to requirements of joining European Union this operational tool seems to help to get closer targeted rate set below, but close to 2.0% over the medium term.

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