BAKU, Azerbaijan, Jan. 31
By Sadraddin Aghjayev – Trend:
Russia’s Gazprombank does not rule out the possibility of a regular increase in Azerbaijan's discount rate by 25 basis points, which may reach 7.75 basis points in March 2022, Deputy Head of the Market Research Department at the Russian Gazprombank Gulnara Khaidarshina told Trend.
At the same time, according to the representative of the bank, the main attention will be paid to non-monetary anti-inflationary measures.
"After that, in the context of the implementation of non-monetary anti-inflationary measures being developed now, the Central Bank of Azerbaijan will have the opportunity to take a break in tightening monetary conditions," Khaydarshina said.
According to her, the decision of the CBA resulted from the arguments aimed at increasing inflationary pressure and expectations, rebuilding the economy, strengthening the soft fiscal policy's impact on the money supply growth.
"Furthermore, the Central Bank of Azerbaijan presented an updated inflation forecast and expects it to slow down to the upper limit of the target range (4 percent +/-2 percentage points) by the end of the year," Khaidarshina stated.
At the first meeting in 2022, the Central Bank of Azerbaijan (CBA) raised again the refinancing rate by 25 basis points, up to 7.5 percent.
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