Central Bank decides on discount rate


September 13, Fineko/abc.az. The Board of the Central Bank decided to reduce the discount rate from 8.25% to 8%, reducing the base point 25.

Abc.az reports with reference to the Central Bank that the upper and lower thresholds of the interest rate band are set in the range of 1.75%.

According to the Central Bank, actual inflation remains below the middle of the target range, there are no significant changes in the dynamics of short-term inflation expectations. According to updated forecasts, by the end of 2019, inflation will remain within the target range (4 ± 2%) slightly above the average level of the corridor. Analysis of the risk balance shows that external factors present a greater threat potential for inflation in the medium term than internal ones. External factors mainly include tensions in world trade and the foreign exchange sector, increased volatility in global commodity markets amid worsening globalization prospects. The сentral bank will continue to monitor these risks and will adequately use the tools at its disposal to keep inflation in target. Further decisions on the interest rate corridor will be made on the basis of the feasibility of actual and forecasted inflation, the impact of internal and external risks on inflation.