CBA announces decision on discount rate - Details

11:37 - 21.06.2024

June 21, Fineko/ The Board of the Central Bank of Azerbaijan (CBA) has decided to keep the discount rate at 7.25%.

ABC.AZ reports with reference to the CBA that the lower limit of the percentage corridor is maintained at the level of 6.25%, and the upper limit at 8.25%.

This decision was made taking into account the comparison of actual and projected inflation with the target (4±2%), the dynamics of inflationary factors and assessment of the balance of risks.

Neutralizing the factors that increase and decrease inflation is one of the reasons for making a decision on the interest rate corridor.

Since the last meeting, annual inflation has fallen below the target range.

So, in May 2024, 12-month inflation was 0.3%, which corresponds to the April forecasts of the Central Bank. In May, the 12-month core inflation was 0.4%.

Annual food deflation was 1.4%, non-food inflation - 1%, and service sector inflation - 2.2%.