Details added (first version posted on 17:28)
The discount rate has been reduced by 0.75 percentage points and stood at 3.5 percent starting from July 30, in accordance with the decision of the management board of Azerbaijani Central Bank (CBA).
At the same time, the parameters of the interest rate corridor have also changed: the corridor ceiling has been reduced from 6 percent to 5 percent, while the corridor floor was decreased from 0.5 percent to 0.1 percent, CBA said on July 30.
The reserve requirements for all deposits of the banks have been reduced from 3 percent to 2 percent, in accordance with the decision of the CBA management board.
"This decision was made given the low inflation level and the total demand factors that influence the growth rates of the economy, as well as to support the diversification of the national economy and increase of the investment and loan activity in the real sector," the bank said.
During the meeting of the CBA management board, the participants emphasized the continuation of the dynamic development of the country's economy and added that the country's revenues and the level of well-being have increased in the first half of 2014.
"Azerbaijan maintains its position in the world economy in terms of financial sustainability of the national economy and the macroeconomic stability," CBA said.
Azerbaijan's economic growth stood at 2.1 percent and its non-oil economy grew by 7 percent in January-June.
The sources of internal development continue to play a significant role in the country's economic development, according to the Central Bank.
"During the reporting period, the average annual inflation dropped by 0.4 percentage points compared to the same period of 2013 and stood at 1.6 percent," CBA said.
Edited by CN