Baku, Azerbaijan, Apr. 6
By Azad Hasanli – Trend:
Inflation in Azerbaijan is projected to moderate to 9 percent in 2017, then slow further to 8 percent in 2018, says the Asian Development Bank (ADB) report titled “Asian Development Outlook 2017: Transcending the Middle-Income Challenge”.
In 2016, inflation was at 12.4 percent in Azerbaijan, says the report, adding that monetary and financial policy in 2016 aimed to limit inflation and restructure the banking system.
In response to high inflation, the country’s Central Bank raised the policy interest rate in four steps to 15 percent in September 2016 from 3 percent in September 2015, says the report.
According to ADB experts, inflation will remain a key challenge over the forecast period, and containing it will require coordinated efforts from monetary and fiscal authorities.
“Monetary policy will likely focus on curbing inflation,” says the ADB report.
According to ADB, which listed Azerbaijan as a Central Asian country in its report, in Central Asia inflation is projected to decelerate to 7.8 percent in 2017 and 7.3 percent in 2018.
ADB, based in Manila, was established in 1966 and is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.
Azerbaijan became an ADB member on Dec. 22, 1999.