BAKU, Azerbaijan, November 7. Analysts at the Netherlands ING predict the Central Bank of Azerbaijan (CBA) to further ease monetary policy in the first quarter of 2024, Trend reports.
ING forecasts the CBA to keep the discount rate at 8.5 percent in the fourth quarter of 2023.
Besides, ING estimates the monetary policy easing to continue in 2024–2025. So, in the first quarter of 2024, the discount rate will decrease by 50 basis points to eight percent and will remain at this level throughout the following year.
It will further decrease by 25 basis points to 7.75 percent in the first quarter and to seven percent in the fourth quarter of 2025, respectively, said the forecast.
The CBA decided to reduce the discount rate from nine percent to 8.5 percent, the upper limit of the interest rate corridor - from 10 percent to 9.5 percent, and the lower limit - from 7.5 to seven percent, at its last meeting (held on November 1).
The next meeting of the CBA on the issue of the discount rate is scheduled for December 20.