Azerbaijan’s Central Bank announces decision on discount, interest rates (UPDATE)
Details added (first version posted on 12:13)
Baku, Azerbaijan, Nov. 15
By Azad Hasanli – Trend:
The Central Bank of Azerbaijan (CBA) said in its report Nov. 15 that it has kept the discount rate at the level of 15 percent.
The decision was made during the meeting of the bank’s board held Nov. 15.
The CBA board also decided to keep the lower limit of the interest rate corridor unchanged at 10 percent, and the upper limit at 18 percent.
The CBA’s decision is explained by economic activity and continuing growth of Azerbaijan’s non-oil sector (2.5 percent growth in the first nine months of 2017), consumer confidence, expansion of export and import substitution processes, growth in oil prices, strengthening of the Azerbaijani manat’s exchange rate by four percent since the beginning of the year, monetary conditions and inflationary processes.
The report noted that the CBA is observing positive dynamics in the non-oil sector of Azerbaijan’s economy, and macroeconomic stabilization plays a special role in formation of such dynamics.
The CBA stressed that analysis of medium- and short-term factors that affect price stability shows that there is no need to correct the monetary policy.
The next meeting of the CBA, at which it is planned to discuss the discount rate again, will be held on February 15, 2018.