Central Bank issues a statement on discount rate - Details

12:02 - 16.09.2022


September 16, Fineko/abc.az. The Central Bank of Azerbaijan has kept the discount rate at 7.75%.

The CBA reports that the lower threshold of the interest rate corridor is kept at the level of 4% and the upper one is 9.25%.

For the fourth time in a row, the CBA keeps the discount rate at 7.75%.

"The decision to maintain the discount rate was made taking into account the fact that the inflation situation has not changed since CBA’s previous meeting on the occasion. The analysis of the situation shows that by the end of 2022, inflation in Azerbaijan will be lower than the current indicator (at the end of August, the average annual inflation is 13.2%). The inflation forecast for 2023 has been revised downward," the CBA says.

The Bank emphasizes that monetary factors continue to exert downward pressure on inflation. At that, the CBA indicates that the situation in the foreign exchange market is stable as a result of the balance of payments surplus. Based on this, the bank only carries out operations on the purchase of foreign currency in the foreign exchange market. In addition, the nominal effective exchange rate of the manat continues to strengthen, which is a factor restraining inflation.

The next CBA meeting on the discount rate will be held on 28 October 2022.

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