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Albania's central bank cut its benchmark interest rate on Wednesday for the first time since July, trimming it by 25 basis points to a record low of 3.75% to give a boost to the slowing economy, newswires report.
The Balkan nation has seen the growth rates of around 6% that it has enjoyed over the last decade slashed by spillover effects from the Eurozone crisis. The government still forecasts 3% growth this year, but that's far above either the 0.5% projected by the International Monetary Fund or the 0.6% seen by the European Bank for Reconstruction and Development.
Central bank Governor Ardian Fullani told reporters after the monthly meeting of the bank's board that the 2.7% GDP growth posted in the third quarter and the similar level expected in the fourth had "not helped diminish the general insecurities that are holding back consumption and private investments."
"By reducing financing costs, the Bank of Albania aims to increase lending for consumption and investments," he said, Reuters reported.
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