BAKU, Azerbaijan, May 10
By Zeyni Jafarov - Trend:
The likelihood of a decrease in interest rate in Azerbaijan seems very low amid an increase in pro-inflationary expectations, Seymur Ibadov, head of the research and investment consulting department of Unicapital OJSC, told Trend.
“The interest rate announced at the recent meeting of the Central Bank of Azerbaijan (CBA) varies within four percent, which is very close to the average rate of the corridor corresponding to the inflation rate announced by the CBA,” Ibadov added.
"While tracking the changes in inflation rate and other global, regional and economic factors, the CBA decided to keep the interest rate at a stable level," head of the department said.
As for the current state of the capital market, the head of the department of Unicapital OJSC said that following the results of the recent auction on the placement of medium-term bonds of the Azerbaijani Ministry of Finance at the stock exchange, there was a noticeable excess of demand over supply.
So, 18 investors submitted 34 orders, in which the range of profitability varied from 7.3-9.05 percent. As a result, 45 million manat ($26 million) was placed with an average yield of 7.87 percent.
Ibadov concluded that the envisaged volume of orders amounted to 40 million manat ($23 million) while the total amount of applications at nominal prices - about 227.5 million manat ($133.8 million) at the planned auction for the placement of medium-term bonds of the Azerbaijani Ministry of Finance.
The interest rate in the country is 6.25 percent since April 30, 2021 upon the decision of the CBA’s board.
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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