...

Azerbaijani National Bank Refuses to Increase Rates of Refinancing

Business Materials 11 August 2007 11:00 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / National Bank of Azerbaijan (NBA) has completed assessment expediency to increase rates for 1 August.

Aftandil Babayev, deputy chairman of management of NBA, has stated that changing rates of refinancing is one of the anti inflation measures. In 2007 the rate of NBA has changed twice, it was increased from 12% by 13% from 1 July 2007. However, maximum and minimum limits of 'interest corridor' have been kept on the previous level. Maximum corridor is 19%, minimum - 5%. These rates are functioning from 2 April. NBA will not reconsider rates in compliance with the results of assessment. The main goal of introduction of new approach of 'interest corridor' and change of rate is restriction of redundant currency affecting decrease of inflation. NBA intends to prolong monitorings of monetary and non-monetary factors; as well changing of rates will be depending on the level of inflation. These measures are attached to enforce the supervision over the monetary factors of inflation.

NBA considers necessary continuing of flexible interest policy to strengthen disinflation by increasing the accumulation rate and decreasing the joint expenditures.

Latest

Latest