Azerbaijan, Baku / corr Trend I.Khalilova / The refinancing ratio has increased from 12% to 13% at the decision of the National Bank of Azerbaijan (NBA) dated 1 June 2007.
The NBA announced that the maximum and minimum limits of the 'rate corridor' were maintained at the previous level. The maximum corridor is 19% and minimum 5%. These rates are active as from 2 April, like a registration rate of 12% (the rate of 9.5% had been active since July 2006). The key objective of the application of a new approach to 'rate corridor' and change of registration rates is the limitation on excess money supply and the impact on the cut in inflation.
The NBA noted its intention to continue monitoring monetary and non-monetary factors and will consider the need to change the registration rate depending on inflation. These measures are directed at strengthening the control of inflation factors.
The application of a 'rate corridor' on the NBA's transactions since the second quarter of 2007 and the increase of the registration rate made an impact on disinflation. The NBA regards it necessary to continue a flexible policy with respect to strengthening the disinflation processes through the increase of the collection norm and restriction of aggregate expenses.