Faster economic growth to help stabilize CPI in Azerbaijan - Unicapital

Finance Materials 16 August 2021 20:20 (UTC +04:00)

BAKU, Azerbaijan, Aug. 16

By Zeyni Jafarov - Trend:

The gradual recovery and acceleration of economic growth in Azerbaijan will positively affect the stabilization of the consumer price index (CPI) in the coming months of this year, Head of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend.

According to him, in the coming months, inflation will be relatively stable, and the cost factor stands ahead among the risks that may affect its growth.

“Along with this, the improvement of the balance of payments indicators neutralizes the impact of rising prices in the global food market on inflation in Azerbaijan, at the same time, it has a positive effect on the stability of the foreign exchange market,” Ibadov said.

Touching upon to the current state of the local capital market, the expert 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 Baku Stock Exchange (BSE), there was a noticeable excess of demand over supply.

“Thus, 10 investors submitted 16 orders, where the profitability ranged from 5.19 to 5.88 percent. As a result, 15 million manat ($8.82 million) was placed with an average yield of 5.27 percent,” he added.

“An auction for the placement of the next tranche of medium-term bonds of the Ministry of Finance of Azerbaijan is scheduled for August 17 at the BSE, and the envisaged volume on orders is 10 million manat ($5.8 million). If the demand for government bonds in the course of trading exceeds the supply, and the price satisfies the issuer, the volume of the offered bonds can be increased up to 50 percent,” Ibadov noted.

In general, according to the latest statements by the Central Bank of Azerbaijan, no noticeable changes in the balance of inflation risks were recorded, and in the mid-term forecast, the factors that have a lowering and increasing influence on inflation continue to balance each other.


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