Azerbaijan’s Central Bank reduces refinancing rate
Baku, Azerbaijan, Feb. 12
By Anvar Mammadov - Trend:
The Central Bank of Azerbaijan (CBA) has reduced the refinancing rate from 15 to 13 percent, Elman Rustamov, chairman of the CBA, said at a press conference in Baku on Feb. 12.
The CBA board also decided to down the lower limit of the interest rate corridor from 10 to 8 percent, and the upper limit - from 18 to 16 percent, he noted.
Average annual one-digit inflation, forecasts on further decrease of the inflation rate and improvement of the balance of payments conditioned reduction of the interest rate parameters, he added.
Depending on the continuation of these positive trends, the CBA considers it possible to further decrease the refinancing rate, he noted.
He said that lowering the refinancing rate means easing monetary policy.
“I would like to note that if no external shocks and risks emerge during the year, the inflation rate will be even lower than the forecast figure of 6-8 percent,” he noted.
Rustamov stressed that when making a decision to down the parameters of the interest rate corridor, the CBA board took into account a number of external and internal processes.
“The CBA will continue to monitor the processes taking place in the economy and financial markets, and will try to ensure stability of prices by using available tools,” Rustamov said.
He added that the parameters of the interest rate corridor will be discussed next time in April.