BAKU, Azerbaijan, December 30. Azerbaijan’s monetary policy in 2023 will further be aimed at ensuring price stability, Trend reports referring to the CBA.
As a result of deliberate policy pursued under the leadership of President Ilham Aliyev, in general, in 2022 macroeconomic stability was maintained and economic growth continued.
The CBA’s operating environment in 2022 is characterized by multilateral impact of global economic processes on the country's economy. The recovery in global demand at a faster pace than supply, the sharp volatility of world commodity prices and inflation in trading partner countries, as well as the increase in supply and logistics costs, affected inflation within the country.
From the point of view of the balance of payments and support for domestic economic activity, the external environment was mostly favorable for Azerbaijan. In the conditions of a surplus balance of payments, the supply on the foreign exchange market expanded, and the growth of the country's strategic foreign exchange reserves continued.
“This year the monetary policy is directed to the easing of inflationary pressure due to monetary factors. Monetary factors limited the excessive growth of aggregate demand. Monetary policy decisions were made with consideration of the factors of actual and projected inflation, as well as the balance of risks. A number of decisions have been made to improve the operational system of monetary policy, as well as introduction of monetary policy tools in a new configuration, has begun,” said the CBA.
“The mentioned measures contributed to strengthening the transfer of monetary policy decisions to inflation through the interest rate channel. For the first time this year, interbank interest rates began to respond to the parameters of the Central Bank's interest rate corridor,” the CBA added.
Next year, monetary policy will also be aimed at ensuring price stability in the country.
"In 2023, monetary conditions will be adjusted depending on the dynamics of annual inflation rates and deviations of updated forecasts from the target range. In case of a decrease in the actual and forecast annual inflation rates, a pause in tightening monetary policy with its subsequent easing will be considered," the CBA said.
Work will continue to improve the strategic and operational framework of monetary policy, guided by the " Socio-economic development strategy for 2022-2026 of the Republic of Azerbaijan".