Central Bank of Azerbaijan lowers discount rate

  01 May 2024    Read: 430
  Central Bank of Azerbaijan lowers discount rate

The Central Bank of Azerbaijan (CBA) has lowered the refinancing rate from 7.5 percent to 7.25 percent as of May 1, AzVision.az reports citing the CBA. 

The CBA data shows that the upper limit of the interest rate corridor was lowered from 8.5 percent to 8.25 percent, while the lower limit was kept unchanged at 6.25 percent.

"This decision was made after considering the comparison between actual and projected inflation against the target range of 4±2 percent, along with efforts to stabilize inflation expectations and assess shifts in risk balance. With a downward adjustment in the inflation forecast, lowering the upper boundary of the interest rate corridor and the refinancing rate aims to facilitate a more accommodating monetary environment. Maintaining the lower boundary unchanged aids in mitigating volatility in interbank interest rates. Additionally, when setting these parameters for the interest rate corridor, their potential impact on interbank market interest rates was also carefully considered," CBA's statement reads.

The next decision of the Central Bank on the parameters of the interest rate corridor will be made public on June 21.



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