BAKU, Azerbaijan, May 3. Considering internal and external inflationary risks, the Central Bank of Azerbaijan continues to conduct anti-inflationary monetary policy, Trend reports via the CBA.
According to the bank, the average interest rate on the unsecured interbank market has increased by 1.2 percentage points since the beginning of the year due to the influence of decisions made on the parameters of the interest rate corridor.
"Since last year, the decisions made to tighten monetary conditions, adequately apply monetary policy tools in a new configuration, increase reserve requirements and apply appropriate macro-prudential requirements have shown the effectiveness of influencing monetary indicators. Reforms aimed at strengthening the impact of monetary policy on inflation,” the CBA said.
Besides, according to the bank, in order to increase competition at auctions for the placement of its notes, create conditions for formation of profitability, and support activity in the short-term money market, an investor base for notes has been formed, and the conditions for placing notes have been changed.
It was also decided that in addition to banks, the right to own notes will be given to resident commercial legal entities operating in the non-oil and non-state sectors (except legal entities engaged in financial and insurance activities), subject to certain limits, the bank noted.
“The expansion of the volume of short-term notes will have a positive impact on activity in the securities market due to an increase in the number of investors," added the CBA.
Previously, the CBA said that annual inflation in March 2023 was 13.6 percent, two percentage points below the peak recorded in September 2022.