Monetary conditions in Azerbaijan are becoming anti-inflationary, and no significant changes in nominal interest rates on loans and deposits have been observed, AzVision.az reports citing a report of the Central Bank of Azerbaijan (CBA).
According to the report, nominal interest remains unchanged in the face of rising inflation, and this leads to a decrease in real interest.
Along with this, the surplus execution of the state budget and the growth of the balance of funds in the single treasury account ensured an increase in the monetary base (by 4.5 percent in the first 8 months of 2021), the report added.
In August 2021, the loan portfolio of local banks increased by 1.6 percent, the CBA said.
“From January through August 2021, the banks’ loan portfolio rose by 7.4 percent compared to the same period of 2020. Consumer loans increased by 12.9 percent, mortgage loans - by 12.2 percent,” the report said.
“In addition, the de-dollarization trend continued in the country. So, in August, dollarization decreased to 44.7 percent on deposits of individuals and to 26.8 percent - on loans,” the Central Bank said.
“When making decisions on monetary policy, the Central Bank also pays attention to an increase in savings in manat,” the report added.