Azerbaijani Central Bank raises interest rate (UPDATE)

Economy Materials 29 March 2023 11:36 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
Read more

Details added (first published: 11:01)

BAKU, Azerbaijan, March 29. The Central Bank of Azerbaijan (CBA) decided to raise the interest rate by 0.25 percentage points to 8.75 percent, Trend reports via the CBA.

According to the CBA, the upper limit of the interest rate corridor was raised from 9.5 percent to 9.75 percent, and the lower limit - from 6.75 percent to 7 percent.

"This decision was made given the dynamics of factors that have a downward and upward impact on the price level in the internal and external environment. Further decisions on monetary policy will be made depending on the dynamics of inflation, the level of deviation of the forecast from the target, and the persistence of risks," said the CBA.

According to the bank, the results of operations carried out by the Central Bank and previous decisions will be monitored and taken into account when making decisions in the field of monetary policy.

"In order to reduce inflationary pressure by limiting the excessive expansion of total demand and consumer activity, the Central Bank will adequately use all the tools and mechanisms at its disposal. If inflation reduction forecasts justify themselves, the possibility of normalizing monetary policy and then easing it, taking into account time intervals, will be considered," said the statement.

The CBA noted that the information on the next decision regarding the monetary policy will be available on May 3, 2023.

Previously, on February 1, 2023, the CBA decided to raise the interest rate by 0.25 percentage points to 8.5. The upper limit was raised to 9.5 percent, while the lower - 6.75.