BAKU, Azerbaijan, March 12. Internal risk factors that could stir the pot of inflation in Azerbaijan include the ignition of cost factors and a runaway train of excessive growth in aggregate demand, the Central Bank of Azerbaijan (CBA) told Trend.
The bank noted that the potential effects of credit activity on price stability are continuously monitored.
"Since the last meeting, there have been no significant changes in the inflation risk balance. Global risks that could create potential inflationary pressures include the possible volatility of prices in international commodity markets, especially in the context of existing geopolitical tensions and trade wars.
High global uncertainty, particularly the impacts of exchange rate fluctuations in certain countries and tariff increases, requires a reassessment of interest rate corridor parameters to address inflationary effects," the report reads.
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