Azerbaijan's CBA can make new decision on level of inflationary range - Unicapital

Finance Materials 27 April 2021 11:33 (UTC +04:00)
Azerbaijan's CBA can make new decision on level of inflationary range - Unicapital

BAKU, Azerbaijan, Apr. 27

By Zeyni Jafarov - Trend:

The Central Bank of Azerbaijan tracking the changes in inflation and other global, regional, and economic factors may make a new decision on the level of the inflationary range at the end of this week, Seymur Ibadov, head of the research and investment consulting department of Unicapital OJSC, told Trend.

“However, given the current situation, maintaining of stable interest rate is more expected,” said Ibadov.

Besides, Ibadov noted that the interest rate announced in March 2021 is 3.9 percent, which is very close to the average indicator of the corridor corresponding to the inflation rate announced by the Central Bank of Azerbaijan (CBA).

Speaking about the current situation in the capital market, the bank’s representative said that a big excess of demand over supply was observed at the stock exchange following the results of the recent auction on placement of short-term bonds of the Azerbaijani Ministry of Finance.

“During the recent auction, 34 orders were submitted by 21 investors, in which the range of profitability ranged within 6.68-12 percent,” he further noted. “As a result, 60 million manat ($35.3 million) was placed with an average yield of 9.95 percent.”

Ibadov added that an auction for the placement of medium-term bonds of the Azerbaijani Ministry of Finance is scheduled for April 27 and the envisaged volume on orders will reach 30 million manat ($17.6 million). If the demand for the state bonds during the trading exceeds the supply, and the issuer is pleased with the price, the volume of the offered bonds can be increased up to 50 percent.

The board of the Central Bank of Azerbaijan on March 19 decided to keep the discount rate at 6.25 percent. At the same time, the lower limit of the corridor was set at 5.75 percent while the upper one - 6.75 percent.


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