Azerbaijan Central Bank keeps discount rate unchanged

By Trend

The Board of the Central Bank of Azerbaijan (CBA) made a decision to keep the discount rate at 6.25 percent, Trend reports on July 30 from the press conference.

According to the source, 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.