Details added (first version posted on 10:56)
Baku, Azerbaijan, June 22
By Anvar Mammadov – Trend:
The lower limit of the interest rate corridor on liquidity operations has been changed from 12 percent to 10 percent in accordance with the decision of the Board of the Central Bank of Azerbaijan (CBA), the bank said in a message June 22.
The discount rate and the upper limit of the interest rate corridor remained unchanged, according to the message.
The next meeting of the Board of the CBA on the issue of changing the level of the discount rate is scheduled for August 1.
The Board of the CBA noted that over the past period of 2017, economic growth in Azerbaijan’s non-oil sector has recovered, and proficit emerged in the balance of payments as a result of growth in exports and decrease in imports.
Stability of Azerbaijan’s national currency is strengthening, the message said.
“Over the last five months, Azerbaijan’s non-oil sector grew 2.3 percent, trade grew 3.2 percent and non-oil industry - 3.9 percent,” the message noted. “Growth in consumer spending, public and net foreign demand were the main factors for the non-oil sector’s growth. Further economic growth this year will depend on acceleration of the planned structural reforms, opportunities for the expansion of net foreign demand, as well as recovery of the investment activity, including financial intermediation.”
The CBA said in the message that during the last four months after switching to a floating exchange rate regime, supply on the foreign exchange market exceeded demand significantly and the exchange rate of the Azerbaijani manat stabilized.
“Until the end of the year, we don’t forecast any important changes in the macroeconomic policy that ensures stability of the manat’s exchange rate,” the message said.