On Thursday, Albania’s central bank raised its benchmark interest rate by 25bps to 1.25%, following a 50bps interest rate hike in March, to curb inflation. The country’s state statistics office reported that annual inflation rose to 7.4% in June from 6.7% in May, exceeding the central bank’s target of 3%. The bank’s latest forecasts show inflation is expected to remain high this year before returning to the bank’s 3% target in the first half of 2024.