BAKU, Azerbaijan, July 30
The Board of the Central Bank of Azerbaijan (CBA) made a decision to reduce the discount rate by 0.25 percent, to 6.75 percent, Trend reports on July 30.
At the same time, the upper limit of the interest rate corridor was also lowered by 0.25 percent from 7.5 percent to 7.25 percent to ensure high liquidity of banks and stimulate lending.
The lower limit of the rate was also lowered by 0.25 percent to 6.25 percent.
This decision was made taking into account significant changes in the balance of risks and alignment of priorities to support economic activity and approach the goals of macroeconomic stability since the last meeting of the CBA Board on Monetary Policy.
As a result of the coordinated activities of the Government of Azerbaijan and CBA in conditions of external shocks, equilibrium is ensured in the foreign exchange market. There have been no significant changes since the beginning of the year, and annual inflation remained below the center of the target range at 3.3 percent.
The Central Bank balances price and financial stability with support for economic activity and employment, and will continue to take all possible measures to support macroeconomic stability in the country and keep inflation within the stated target.
The above decision comes into force on July 30, 2020. The next decision of the CBA Board on the parameters of the interest rate corridor will be announced on September 18, 2020.
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