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Lowering interest rate by Azerbaijan’s Central Bank to boost economy – analyst

Economy Materials 25 October 2019 17:29

BAKU, Azerbaijan, Oct. 25

Trend:

A lower interest rate can give an additional impetus to the Azerbaijani economy through business revitalization, and this is a good signal for the economy, Anna Bodrova, senior analyst of Alpari Group foreign exchange company, wrote in her article for Forbes.kz, Trend reports.

“Azerbaijan’s Central Bank (CBA) has lowered the discount rate by 25 basis points to 7.75 percent from previous 8 percent,” reads the article. “A decrease in the indicator in 2019 may not be the last. At the beginning of the year, the discount rate in Azerbaijan was 9.75 percent per annum.”

“The CBA has noted a decrease in inflation risks, and this makes it possible to continue pursuing a monetary policy in the current direction,” the article said. “The regulator calls this normalization, and in view of today’s oil prices and global market conditions, it seems to be really so. The next CBA meeting is scheduled for Dec. 13. If inflation in Azerbaijan continues to decline and goes down to 2.5 percent, at the December meeting, the CBA may lower the rate again.”

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