Azerbaijan's Central Bank talks possible discount rate decline (UPDATE)
(Details added 17:16)
Baku, Azerbaijan, April 9
By Anvar Mammadov – Trend:
The Central Bank of Azerbaijan (CBA) does not rule out further reduction of the discount rate during 2018, CBA Chairman Elman Rustamov said at a press conference in Baku on April 9.
He noted that the discount rate can be reduced to a single-digit level if the current positive trends remain.
“Today, we do not see any danger in the currency market. We want to encourage banks to lend more actively to the economy. The economy has funds; the liquidity level is rising. In the first quarter, the monetary base grew 11 percent; but banks are directing funds to securities,” Rustamov said.
The Central Bank of Azerbaijan reduced the discount rate from 13 to 11 percent on April 9.
The CBA Board also decided to lower the upper limit of the interest corridor from 16 to 14 percent. The lower limit of the interest corridor was kept at 8 percent.