Expert talks terms for discount rate decrease in Azerbaijan
The Central Bank of Azerbaijan (CBA) may slightly reduce the discount rate during the further discussion of the interest corridor parameters at the board meeting, Azerbaijani expert in economic affairs Farhad Amirbayov said.
The expert said that the CBA’s decision will mainly depend on the impact of import operations and an increase in tariffs on inflation.
"At present, the CBA’s main goal is to fight high inflation,” he said. “Frankly speaking, today high inflation has mainly non-monetary reasons. It is formed due to external influence, in particular imports and an increase in tariffs for fuel and utilities. Influence of such factors on inflation is usually temporary and this effect is gradually disappearing.”
According to the Azerbaijani State Statistics Committee, the average annual inflation rate reached 13.7 percent in the country for 10 months.
At present, a high discount rate slightly impacts on the country's money market, the expert added.
"In fact, only a few banks are refinanced at the discount rate,” he said. “The economy, in a broad sense, is not affected by refinancing. So, the CBA's high discount rate slightly impacts the country's money market and is felt only at a high rate for bank loans."
The CBA has recently changed the discount rate on September 14, 2016, when it was increased from 9.5 percent to 15 percent. The next meeting of the CBA's board dedicated to the discount rate will be held on November 15.
BTK railway opens up new opportunities for closer cooperation between Azerbaijan and Bulgaria, FM says
Azerbaijan's Foreign Minister Elmar Mammadyarov received Maya Hristova, the Ambassador of Bulgaria to Azerbaijan upon the termination of her diplomatic tenure.
During the meeting, the sides expressed satisfaction with the level of comprehensive development of cooperation between the two countries and high-level mutual visits.
Mammadyarov commended Ambassador Maria Hristova’s efforts in development of friendship and cooperation between our countries during her diplomatic mission.
He added that the launch of Baku-Tbilisi-Kars railway opens up new opportunities for closer cooperation between the two countries.
Ambassador Hristova expressed her gratitude for the support provided to run her diplomatic activities and noted that she speared no efforts to enhance bilateral relations during her diplomatic mission.
The Minister wished the ambassador every success in her future activities.