Azerbaijan Central Bank to raise interest rate to 15%
Baku, Azerbaijan, Sept. 9
By Azad Hasanli – Trend:
The Central Bank of Azerbaijan (CBA) will increase the interest rate from 9.5 percent to 15 percent starting from Sept. 14, the CBA said in a message Sept. 9.
The upper limit of the interest rate corridor will increase from 15 percent to 18 percent, while the lower limit will rise from 4 percent to 12 percent.
“The recent changes in the internal and external factors affecting inflation bring the need to take additional anti-inflationary measures,” the CBA said. “During 2016, the national currency rate changed in accordance with supply and demand in the foreign currency market and trends in the balance of payments.”
“The Central Bank of Azerbaijan reduced its participation in the foreign currency market to the minimum and interventions were implemented only in order to regulate short-term sharp fluctuations of the manat exchange rate. During this period, the State Oil Fund of Azerbaijan (SOFAZ) was selling foreign currency through auctions of the Central Bank.”
The Central Bank of Azerbaijan will continue measures to ensure macroeconomic and financial stability, including the measures to keep inflation at an acceptable level and enhance confidence in the national currency.