Baku, Azerbaijan, Jan. 2
By Maksim Tsurkov - Trend:
The Central Bank of Azerbaijan (CBA) used the promotional opportunities of monetary policy in a low inflation environment in 2014, according to a statement from the CBA.
The statement covered main areas of the monetary policy and financial stability in 2015, and was published by the official press.
According to the statement, the CBA eased the monetary policy given domestic and external factors of economic growth, as well as tendencies of the economic cycle as a whole.
"The CBA, in order to boost investment activity in the non-oil sector and create conditions for lowering interest rates, twice made changes to the parameters of the interest rate corridor in 2014," the statement said.
"As a result, the discount rate was gradually reduced from 4.75 percent to 3.5 percent. At the same time, the rules of obligatory reservation on domestic and foreign commitments of banks were reduced from three to two percent. These measures had an impact on reduction of interest rates on deposits and loans," the document read.
The statement also said that throughout 11 months of 2014, money supply rose by 6.6 percent with regard to the money demand.
"The increase in non-cash money supply was 22 percentage points higher than the growth of cash supply," the statement read.
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