BAKU, Azerbaijan, November 2. The reason for discount rate reduction is related to the fact that, according to the Central Bank's forecasts, inflation will be in the target range during the next medium-term period, Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend reports.
He spoke during a discussion of the draft law "On the State Budget of Azerbaijan for 2024" at today's meeting of Azerbaijan's Milli Majlis (Parliament) Committee on Economic Policy, Industry, and Entrepreneurship.
He added that the foreign exchange market's easing strategy is implemented when supply exceeds demand.
"According to the CBA plan, our base will rise to 20 percent by the end of the year, posing future macroeconomic risks." As a result, we are lowering the discount rate parameters to limit potential risks," Kazimov noted.
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