Albania's central bank has cut interest rates from 4.50 percent to 4.25 percent in an effort to boost private consumption and investments, Bank of Albania governor Ardian Fullani said on Wednesday.

The latest cuts follows three similar ones since September to provide incentives to the national economy.

"The decision was motivated by the fall of inflationary pressures due to a careful fiscal policy," he told a news conference.

Fullani added economic growth in Albania had slowed in the first quarter this year as a result of the global economic crisis and that 2012 would be a challenging year.