Central Bank of Azerbaijan lowers interest rate (UPDATE)
Details added (first version posted on 14:30)
BAKU, Azerbaijan, Sept. 18
By Zeyni Jafarov – Trend:
The Board of the Central Bank of Azerbaijan (CBA) decided to reduce the interest rate from 6.75 percent to 6.5 percent, Trend reports with reference to the CBA.
“The lower limit of the interest rate band has been set at six percent and the upper limit of the interest rate band has been estimated at seven percent,” the bank said.
This decision is aimed at supporting aggregate demand, keeping the inflation rate to maintain macroeconomic stability (4 ± 2 percent) and thereby accelerating the process of economic recovery.
The accepted level of the interest rate makes it possible to control the dynamics of inflationary processes in the short and medium-term.
The further decisions on the parameters of the interest rate band will be made in the short and medium-term, depending on the balance of inflation risks, the trajectory of actual inflation, the international situation, and the situation in the foreign exchange market.
The CBA holds the balanced position between price and financial stability and support for economic activity and employment and will continue to take all possible measures as part of supporting the macroeconomic stability in the country and keeping the inflation rate within the stated target index.
The abovementioned decision comes into force from the moment of its adoption. The further decision of the Board of the CBA on the parameters of the interest rate band will be announced on October 30, 2020, and a press conference will be held in this regard.