BAKU, Azerbaijan, December 15. The regular decision of the Management Board of the Azerbaijani Central Bank on interest rate corridor parameters will be made public at 11:00 (GMT+4) on December 16, Trend reports citing the Central Bank.
On October 28, the Central Bank decided to raise the discount rate by 0.25 percent to eight percent. The upper limit of the interest corridor remained at the level of 9.25 percent, while the lower limit increased by one percent, thus reaching five percent.
Governor of the Central Bank Taleh Kazimov said that this decision was made in order to improve the operational structure of monetary policy given actual and projected inflation, processes occurring in the global and domestic economic environment. The inflationary pressure remains elevated in Azerbaijan, as in most countries.
According to him, actual inflation is influenced by inflationary processes in the major trading partner countries. It was decided to tighten monetary policy in support of savings in the national currency savings in the context of growing inflationary pressure. The interest rate corridor is expected to be narrowed in order to further strengthen liquidity management in the banking sector and credit activity regulation through interest rates in the short-term money market.
Kazimov noted that the Central Bank is forced to pursue a tight monetary policy due to recent global events.