Details added (first version posted on 13:38)
Baku, Azerbaijan, Aug. 5
By Huseyn Valiyev, Azad Hasanli – Trend:
The Central Bank of Azerbaijan (CBA) will increase the interest rate from 7 to 9.5 percent starting from Aug. 8, the CBA said in a message Aug. 5.
Interest rate cap and floor will remain unchanged – 15 and 4 percent, respectively.
The CBA said the interest rate increase is aimed at formation of real interest rates at a level that will stimulate the attraction of deposits in national currency, and thus, increase its credibility.
This measure will also allow increasing attractiveness of sterilization operations held by the Central Bank.
Last time, the interest rate was changed in March 2016, when the CBA increased it from 5 to 7 percent.
The interest rate has almost never exceeded 5 percent since 2009.