Central Bank lowers discount rate to 7.5%


December 30, Fineko/abc.az. In 2019 the Central Bank discussed the parameters of the interest rate corridor 8 times, as a result of which it was decided to reduce gradually the discount rate from 9.75% to 7.5%. In general, since the beginning of 2018 the discount rate has decreased by 2 times.

ABC.AZ reports with reference to the Central Bank's statement the expansion of monetary supply also played an important role in neutralizing monetary conditions. The monetary base in manats has grown up to 23% since the beginning of the year. The growth of the money supply in manats (monetary aggregate M2) for 11 months made up 13.8%.

The easing of monetary conditions affects the reduction of interest rates. In general, the average interest rate for new deposits raised in manats since the beginning of 2018 decreased by 2.9 points and on new loans by 3.4 points. Interest rates on the government securities market also change in parallel with the dynamics of the parameters of the interest rate corridor of the Central Bank.

By Elmir Murad