Central Bank of Azerbaijan raises lower limit of interest rate corridor
Baku, Azerbaijan, May 3
By Azad Hasanli - Trend:
The Central Bank of Azerbaijan has raised the lower limit of the interest rate corridor on liquidity operations from two percent to four percent, and reduced the higher limit from 17 percent to 15 percent keeping the discount rate steady at seven percent, the bank said in a message May 3.
The actual level of the inflation formed as a result of the recent tendencies observed in the national economy, the changes in volume and structure of the total demand, treatment of main cyclic and structural factors affecting the inflation, as well as stabilization of inflationary expectations stipulate the reduction of higher limit of the interest rate corridor.
At the same time, tendencies in the yield of securities as well as the interest rate on interbank monetary market also form a basis for this.
On the other hand, the Central Bank of Azerbaijan also plans to conduct sterilization operations of liquidity in order to achieve considered growth rates of the money supply. This urges the central bank to raise the lower limit of the corridor.
This will also increase the attractiveness of deposits in the national currency, increase confidence in Azerbaijani manat and make it possible to balance the currency market.