NBA: "Increase of interest on credits is aimed at influencing the inflation growth rates"

According to deputy chairman of the board of the National Bank Rufat Aslanly, today the National Bank of Azerbaijan uses all possible tools in line with its mandate to avert the growth of consumer prices in the country.

"By using such tools, as increase of rates on centralized resources and norms on mandatory insurance, the National Bank of Azerbaijan, as well as the application of the bi-currency basket, is fighting with inflation", said Aslanly.

He said today the National Bank of Azerbaijan and the government are holding consultations regarding the plan of anti-inflation actions for the near future. Aslanly did not forecast on the inflation indicators by the end of the year, as they depend not only on internal but also on external factors. For example, the recent correlation between dollar and Euro is too controversial and causes the global price hike.

"The arsenal of anti-inflation tools of the National Bank of Azerbaijan is wide and the decision to apply new ones depends on the situation but the National Bank of Azerbaijan does not try to go beyond the limits of measures, taken on the local market. We consider it necessary to coordinate these measures to attain better effect", said Aslanly.

He considers that all these facts influence the rise in prices on credits, issued by local banks. If today we compare the average level of rates from the average level of inflation, it would become clear that in some cases the interest rates are lower than the inflation rate, for example on credits, issued by the National Fund of Assistance to Entrepreneurship.

But, on the other hand, the situation is influenced by the correlation of demand and proposal.

As for the rise in the interest on credit, I would admit that it is one of the anti-inflation measures, applied throughout the world", said Aslanly.

/Day.Az/