Baku, Azerbaijan, Oct. 30
By Taleh Mursagulov - Trend:
The Central Bank of Azerbaijan (CBA) has reduced the discount rate by 0.25 percent (from 10 percent to 9.75 percent), the Chairman of the CBA Elman Rustamov said at a press conference on Oct. 29.
The CBA also lowered the upper limit of the cap from 12 percent to 11.75 percent, and the lower limit of the floor from 8 percent to 7.75 percent.
"Further changes in the discount rate will depend on the compliance of the projected inflation with the target cap and floor," Rustamov said.
As Rustamov noted, the new parameters of the discount rate cap and floor in the context of low inflation, along with the support of national currency fees, as well as the neutralization of other factors will serve as a signal for reducing discount rates on loans.
In 2018, the CBA had earlier reduced the discount rate in February from 15 to 13 percent, in April from 13 to 11 percent, in June from 11 to 10 percent and in August it remained unchanged.
The next discussion on the discount rate will take place at the end of December 2018.