According to the CBA, the upper and lower limits of the refinancing rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.
According to the bank, the decision to keep the refinancing rate unchanged was based on the alignment of the actual inflation rate with the forecast, the maintenance of expected inflation within the target range (4±2 percent), and the dynamics of both internal and external inflation factors.
"Although annual inflation has risen since the last meeting, it has remained below the lower end of the target range (4±2 percent). As of June 2024, 12-month inflation stood at 1.1 percent, with core inflation at 0.8 percent. Annual food inflation was 0.2 percent, non-food inflation - 1 percent, and service inflation - 2.4 percent," CBA stated.
The Central Bank also noted that the external inflation environment remains generally stable.
"However, the price declines observed in previous months have halted, and some products are now experiencing price increases. An additional factor contributing to the reduction of imported inflation during this period was the 3 percent growth in the nominal effective exchange rate of the manat over the first six months of 2024," CBA reported.
The foreign trade balance, a key component of the balance of payments, showed a surplus of $4 billion in the first half of 2024. During this period, the country's strategic foreign exchange reserves increased by 1.8 percent, reaching $69.7 billion. Specifically, the Central Bank's foreign exchange reserves rose by 1.1 percent, totaling $11.7 billion," the bank added.
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