BAKU, Azerbaijan, July 12
By Zeyni Jafarov - Trend:
The recovery and acceleration of economic growth in Azerbaijan may have a positive impact on the stabilization of inflation in the coming months, head of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend on July 12.
“Perhaps, the inflation rate will not exceed the upper limit of the Central Bank of Azerbaijan by the end of the year and will remain stable until the end of the year,” Ibadov added.
The inflation rate will be relatively calm in the coming months, and among the risks that may affect the growth of the consumer price index is the factor of expenses.
"Moreover, the improvement in the balance of payments neutralizes the impact of rising prices in the world food market on inflation rate in Azerbaijan and at the same time has a positive effect on the exchange rate of the national currency and the stability of the foreign exchange market," head of the department said.
As for the current state of the domestic capital market, the head of the department stressed that an auction on the placement of another tranche of medium-term bonds of the Azerbaijani Ministry of Finance is scheduled for July 13 at the stock exchange in Baku while the envisaged volume on orders is 40 million manat ($23 million).
If the demand for state bonds during 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.
In general, according to the latest statements by the Central Bank of Azerbaijan, no noticeable changes were observed in the balance of inflation risks and the factors that have a decreasing and increasing influence on the inflation rate continue to balance each other in the mid-term forecast.
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