Central Bank of Azerbaijan raises interest rate to 3%

"Given the dynamics of macroeconomic indicators and forecasts for the future, the CBA Management Board has decided to increase the interest rate to 3% from Nov.1," the report says.

In addition, the Board set the compulsory reservation on the banks' foreign liabilities at 0.5% to manage the external monetary factors of money supply growth. Since early 2010, an increase has been recorded in surplus of payment balance of the monetary reserves, as well as expansion in the money supply from internal and external sources of Azerbaijan on the backdrop of global economic recovery.

Previously, CBA Management Board decided to reduce the interest rate by one percent to two percent from May 25. The upper limit of percentage corridor was reduced from 8 to 7%.


/Trend/