Central Bank should make these days decisions on parameters of interest rate corridor – everyone wait for Elman Rustamov`s decision


January 28, Fineko/abc.az. On 31 January the Central Bank of Azerbaijan will hold a meeting on monetary policy for 2020.

ABC.AZ reports that the meeting participants are expected to make decisions on the parameters of the interest rate corridor. The decision will be announced to the public on the same day.

In 2019, the CBA Board held eight meetings, at which it took decisions on the discount rate cuts.

In 2017 the Central Bank's discount rate was at the level of 15%, in February 2018 it was reduced to 13%, in April to 11%, in July to 10%, in October to 9.75%, in February 2019 to 9.25%, in March to 9%, in April to 8.75%, in June to 8.5%, in July to 8.25%, in September to 8%, in October to 7.75%, in December to 7.50%.

Experts believe that the probability of discount rate cuts on 31 January is high. If this time there is a cut by 0.25 basis points, the discount rate will fall to 7.25%. The Central Bank may go for a higher reduction - up to 0.5 basis points.

By Elmir Murad