12:50 - 30.07.2024

---

July 30, Fineko/abc.az. "We do not expect that the Central Bank of Azerbaijan (CBA) will reduce the additional discount rate," ABC.AZ informs, citing the report of Fitch Ratings.

The credit rating agency emphasized that the CBA has paused its easing cycle since May.

“We do not expect additional rate cuts, given the expected pick-up in inflation due to increased regulated prices and the projected increase in government spending from the 2024 amended budget," Fitch’s report says.

Fitch has also published the forecast on inflation: “Annual inflation remained below the CBRA's target band (4%±2pp) in 1H24 and will average 3.5% in 2024 before increasing to 4.7% by 2026, higher than the 2.5% projected for the 'BBB' median.”