Baku, Azerbaijan, Aug. 1
By Ilkin Shafiyev - Trend:
There is a potential for further easing monetary policy in Azerbaijan, Chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov said at a press conference August 1.
"However, it is necessary to take into account both external and internal risks when making regulatory decisions in this sphere," Rustamov said.
He attributed the volatility of exchange rates and inflation in the partner countries to external risks, and the rapid growth of imports to domestic ones.
"These factors can lead to an increase in inflation, which should be taken into account when making decisions on monetary policy. At the same time, I note that inflation is in a downward trend and is fixed at a single-digit level. The average annual inflation amounted to 3 percent in the 6 months of 2018, which is below the declared target interest rate of 6-8 percent. Reduction of the inflation, strengthening of the nominal effective exchange rate of the manat, optimal management of the money supply, reduction of the inflation expectations, seasonal factors - all these reduced to some extent the impact of inflation processes in the partner countries on the growth of inflation in Azerbaijan," Rustamov said.
He also added that the Central Bank, together with other relevant government agencies, is working on the transition to a floating exchange rate of the manat.
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