Azerbaijani Central Bank reduces rates
Azerbaijan, Baku, Dec. 7 / Trend /
The Azerbaijani Central Bank (CBA) decided that the rate will be reduced from 5.25 percent to 5 percent effective December 10, the CBA said on Friday.
The decision was made in order to support economic growth in the non-oil sector of the country by reducing interest rates, which is possible taking into account the optimal level of inflation.
"The growth of economic prosperity and the strengthening of macroeconomic stability, economic diversification and exports were accelerated in 2012," the report says. "The non-oil economy in the country increased by 10.4 percent for 10 months and became the main factor behind economic growth. Both internal and external demand had a positive impact on economic growth and employment."
This year, the Central Bank continued operations aimed at maintaining price stability and the health of the financial sector in accordance with the protocol of its prior monetary policy.
"The guidelines of monetary and macro-prudential policy were altered for the sake of effective implementation of the mandate," a statement said.
The stability of the Manat was preserved. The rate of the money supply growth corresponded to objectives surrounding inflation, which remained at the one-digit level.
The average annual inflation in the country (1.3 percent) was significantly lower than the level of inflation in the countries of foreign trade partners. There was a tendency of reducing the average rate on loans in these circumstances, the CBA said.