Weekly review of Azerbaijan's financial market

Finance Materials 5 February 2023 13:57 (UTC +04:00)
Weekly review of Azerbaijan's financial market
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, February 5. The Central Bank of Azerbaijan (CBA) raised the interest rate this week, Trend reports.

The CBA decided to raise the interest rate by 0.25 percentage points to 8.5 percent. The upper limit of the interest rate corridor was raised to 9.5 percent, meanwhile, the lower limit reached 6.75 percent.

Governor of the CBA, Taleh Kazimov, said during the press conference dedicated to the changes in the interest rate that the CBA is taking steps to reduce inflation.

According to the CBA's expectations, the annual inflation rate in Azerbaijan is expected to be 8 percent in 2023.

Furthermore, Azerbaijan's monetary policy will depend on the potential risks on external and internal factors of inflation. Macroeconomic forecasts will be updated quarterly in order to make the next decisions on monetary policy.

Moreover, one of the short-term plans of the Central Bank of Azerbaijan is to increase the profitability in the national currency. At this stage, this strategy is being discussed, and information is expected to be provided to the public in the near future.

Speaking about the law on payment systems and services, the CBA governor noted that the law is more likely to be adopted in the next 2-3 months. The bill is currently under consideration by some government agencies, and it is expected that it will be submitted to Azerbaijan's Milli Majlis (Parliament) in the near future.

The construction of the new administrative building for the Central Bank continues.

During the press conference on changes in the interest rate, CBA Executive Director Farid Osmanov noted that the Central Bank of Azerbaijan and the International Monetary Fund (IMF) are preparing a cybersecurity strategy for Azerbaijani banks.

In addition, the Azerbaijan Banks Association has joined the Sustainable Banking and Finance Network.