BAKU, Azerbaijan, January 22. Changing the refinancing rate by 1 percentage point affects the AZIR index by about 0.60 percentage points, which in turn affects deposit rates, changing them by about 0.4-0.5 percentage points when the rate changes by 1 percentage point, Director General of the Central Bank Vugar Ahmadov said at a press conference on the parameters of the interest rate corridor, Trend reports.
He noted that multiplying these figures, it can be seen that a change in the discount rate by 1 percentage point will actually lead to a change in long-term deposits by 0.3 percentage points.
“This is a general estimate of transmission. What we observe is that as time goes on, the transmission becomes stronger. So we can already see how deposit interest rates affect lending interest rates. This is the bandwidth effect we have been waiting for for years,” Ahmadov said.
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