Central Bank lowers discount rate


December 13, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) has made a decision to reduce the discount rate to 7.75% from 7.5% from 13 December.

ABC.AZ was informed at the Central Bank that the upper and lower thresholds of the interest corridor are set in the range of ±1.75% to the discount rate.

The annual inflation did not go beyond the projected trajectory and remained below the center of the target range. Inflation expectations remain stable despite the impact of a number of internal and external factors.

With taking into account the latest trends, the Central Bank has approved the forecast of inflation reduction for the end of 2019. The country’s main bank considers that it is linked with preservation in the short-term period of the predominance of stabilizing factors in the balance of inflation risks. And in the medium-term prospect, inflation risks cause real interest rates to remain in the positive zone.

It should be noted that the following decisions on the parameters of the interest rate corridor will be made depending on the degree of deviation of actual inflation from the stated goal, changing macroeconomic conditions and the likelihood of risks.