BAKU, Azerbaijan, June 1
By Zeyni Jafarov – Trend:
Amid rising pro-inflationary expectations, the interest rate in Azerbaijan is unlikely to fall, Head of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend.
According to Ibadov, the interest rate announced following the last meeting of the Central Bank of Azerbaijan (CBA) varies within 4 percent, which is very close to the average indicator of the corridor corresponding to the inflation rate announced by the regulator.
"The Central Bank, tracking global, regional, and economic factors, has decided to steadily keep the interest rate," the expert said.
As for the current state of the local capital market, the head of the Unicapital research and investment consulting department noted that following the results of the last auction for the placement of medium-term bonds of the Ministry of Finance of Azerbaijan at the exchange, there was a noticeable excess of demand over supply.
“So, from the side of 25 investors, 39 orders were submitted, where the range of profitability ranged from 6.8-13 percent. As a result, 60 million manat ($35.2 million) was placed with an average yield of 7.35 percent,” he added.
Ibadov said that at the planned auction for the placement of medium-term bonds of the Ministry of Finance of the country, the envisaged volume of orders reached 40 million manat ($23.5 million), and the total amount of applications at nominal prices was about 270 million manat ($158.8 milliom).
The Ministry of Finance of Azerbaijan plans to issue 17 million medium-term bonds for a total of 1.7 billion manat ($1 billion) for 2021.