BAKU, Azerbaijan, February 1. Azerbaijan's monetary policy will be adopted depending on the degree of realization of potential risks on external and internal factors of inflation, Trend reports via the Central Bank of Azerbaijan (CBA).
According to the bank, macroeconomic forecasts will be updated quarterly in order to make the next decisions on monetary policy.
"We will continue to use all available tools and mechanisms to reduce inflationary pressure by limiting aggregate demand. In case of a prolonged decline in annual inflation rates and forecasts, a pause will first be taken in monetary tightening, and then the possibility of its normalization, that is, reduction, will be considered," said the CBA.
"When deciding on the interest rate corridor, the Central Bank will consider the degree of monetary tightening and the time interval necessary for its transfer into inflation," the CBA added.