12:34 - 15.05.2025

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May 15, Fineko/abc.az. A 1 p.p. change in AZIR index (a differentiated index reflecting the weighted average interest rate on transactions between banks) affects interest rates on individual deposits by 0.14–0.27 p.p.

ABC.AZ reports, quoting deputy Elchin Gulaliyev, the director of the Monetary Policy Department of the Central Bank of Azerbaijan (CBA).

"Since November 2023, index 1D AZIR has been formed within the interest rate corridor, which indicates the launch of an interest rate channel in the transmission of monetary policy," he said.

Gulaliyev pointed out that taking into account experience of the last two years and international best practices, new, more advanced rules for calculating AZIR index were developed and approved in close cooperation with experts from the European Bank for Reconstruction & Development.

"We also tried to assess the impact of 1D AZIR on loan rates. So far, assessments are ongoing. It takes a little time. Work in this direction is underway," he added.