Albania’s central bank held its key policy rate at 3.0% for the eighth month, with overnight lending and deposit rates at 4.0% and 2.0%, respectively. The inflation rate has been on a decline due to a strengthened lek-euro exchange rate and earlier fiscal tightening measures. Still, inflation concerns remain due to rapid wage growth and sustained costs in various sectors. The central bank forecasts a return to the 3% inflation target by mid-2024.