Central Bank of Azerbaijan reduces discount rate

Photo: Central Bank of Azerbaijan reduces discount rate / Economy news

Baku, Azerbaijan, April 30

By Emin Aliyev - Trend:

Starting from May 1, 2014 the discount rate in Azerbaijan will be reduced by 0.5 percentage points to 4.25 percent, in accordance with a decision of the management board of the Central Bank of Azerbaijan (CBA).

"This decision was made given the low inflation level, to provide the necessary support for the national economy's diversification and increasing investment activity in the non-oil sector, as well as creating conditions for continuation of the decrease in interest rates," according to the message.

At the same time the parameters of the interest rate corridor have changed, the corridor's maximum level being reduced from 7 percent to 6 percent, and the minimum level from 1 percent to 0.5 percent.

During the last meeting, the CBA management board pointed out the national economy's growth that continued in the first quarter and the fact that the main source of this growth was the non-oil sector.

"The country's favorable external position has been maintained and the strategic currency reserves continued to grow. The macroeconomic stability has strengthened and there has been a decrease of inflation, its average level reaching only 2 percent in January-March. The stability of the manat's exchange rate continues to play an important role in maintaining the macroeconomic stability," according to the message.

Translated by E.A.

Edited by C.N.

Follow us on Twitter @TRENDNewsAgency