Azerbaijani Central Bank keeps discount rate unchanged (UPDATE)
Details added (first version posted on 13:27)
Baku, Azerbaijan, Dec. 26
By Azad Hasanli - Trend:
The Central Bank of Azerbaijan (CBA) has kept the discount rate at 9.75 percent, Trend reports referring to the CBA on Dec. 26.
The upper limit of the interest rate corridor remained at the level of 11.75 percent, the lower limit of the interest rate corridor remained at the level of 7.75 percent.
The decision, made by the board of the bank, came into force at 14:00 (GMT+4) on December 26.
According to the CBA, the preservation of the parameters of the corridor is connected with the uncertainty in foreign markets. In the future, the condition of monetary policy will depend on the dynamics and sustainability of inflation factors.
The economic activity in Azerbaijan is still positive and is approaching its potential level, the CBA said.
The economic growth reached one percent in January-November 2018, including 1.4 percent in the non-oil sector.
The non-oil sector growth is mainly connected with activity in trade. The non-oil industry increased by 8.7 percent, agriculture - by 4.6 percent.
The business confidence index, calculated on the basis of monitoring of the real sector, is growing in trade and services, but decreased in the construction sector.
As for households, surveys show that consumer confidence is positive.
The main factors supporting the growth of consumption are the increase in real income of the population in terms of low inflation and the restoration of consumer lending.
In 2019, the CBA intends to consider a change in the discount rate eight times - on Feb. 1, March 15, April 26, June 7, July 26, Sept. 13, Oct. 25, Dec. 13.
In 2018, the CBA reduced the discount rate in February from 15 percent to 13 percent, in April from 13 percent to 11 percent, in June from 11 percent to 10 percent, in August remained unchanged and in October from 10 percent to 9.75 percent.
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