BAKU, Azerbaijan, April 6. The Central Bank of Azerbaijan Republic (CBAR) may tighten its monetary policy in the first half of 2022, Trend reports citing the Asian Development Outlook 2022 report of the Asian Development Bank (ADB).
According to ADB forecasts, the CBAR will keep the discount rate at the current level (7.75 percent) or increase it, against the backdrop of increased inflationary pressure.
"The Central Bank may go for an easing of monetary policy if inflation is in the corridor of 2-6 percent," the report said.
CBAR ensures stability of the exchange rate of the national currency of Azerbaijan due to high oil prices, report noted.
"The CBAR may continue the policy of sterilizing liquidity in Azerbaijani manat by issuing notes and will also control the volume of foreign currency in circulation," the report added.