Azerbaijan Central Bank not to change discount rate

  30 July 2021    Read: 256
Azerbaijan Central Bank not to change discount rate

The Board of the Central Bank of Azerbaijan (CBA) made a decision to keep the discount rate at 6.25 percent, reports citing Trend.

The upper limit of the interest rate corridor was kept at the level of 6.75 percent, and the lower limit - 5.75 percent.

The decision was made taking into account the latest changing tendencies for inflation, the possible impact of cost factors and demand on prices in the short and medium-term.

The analysis showed that the balance of inflation risks between the factors hasn’t notably changed. Rising oil and world food prices, improving external balance, exchange rate stability, which is the main political anchor, countercyclical fiscal policies and expected monetary expansion are counterbalancing factors.

Besides, the source stressed that further decisions on the parameters of the interest rate band will be made taking into account the comparison of the actual and projected inflation with the target parameters and changes in the balance of risks in the horizon of the medium-term forecast.

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