11:15 - 7.06.2019

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June 7, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) has lowered the accounting rate since 7 June.

The CBA reports that a decision has been taken to reduce the accounting rate from 8.75% to 8.5%.

The lower threshold of the percentage corridor has been reduced from 6.75% to 6.5%, and the upper threshold from 10.75% to 10.5%. This decision came into force on 7 June.

The CBA reports that the stabilization of oil prices in recent months, low inflation and stable macroeconomic situation led to a reduction in the rate from 8.75% to 8.5%.

"In the current macroeconomic environment, the reduction of the accounting rate is explained by the fact that real interest rates remain in the positive zone, which serves to neutralize external and internal inflation risks. In the future the reaction of monetary policy will depend on the differences between real and projected inflation, inflation expectations, changes in the external environment and the reaction of financial markets to these changes," the CBA informed.

The next meeting to consider the issue of the accounting rate will be held on 26 July 2019.

This is the fourth reduction of the CBA's accounting rate in 2019. Previously the CBA reduced the discount rate from 9.75% to 9.25% on 1 February, from 9.25% to 9% on 15 March, from 9% to 8.75% on 26 April of 2019.

In 2018 the accounting rate was gradually reduced from 15% to 9.75%. The CBA lowered the accounting rate from 15% to 13% on 12 February, from 13% to 11% on 9 April, from 11% to 10% on 14 June 2018. On 1 August the Bank decided to keep the rate at the level of 10%. On 30 October 2018 the rate was reduced from 10% to 9.75%. On 26 December 2018 the CBA Board made a decision to keep the rate at 9.75%.