Central Bank of Azerbaijan kept the discount rate

The Board of the Central Bank of Azerbaijan (CBA) decided to keep the discount rate at 6.5%.

This is reported by 1news.az citing the CBA.

According to the information, the lower threshold of the interest rate corridor is kept at 5.5%, and the upper one at 7.5%.

“When making a decision on the parameters of the interest rate corridor, the dynamics of actual and projected inflation, as well as processes occurring in the domestic financial market, were taken into account. On the one hand, the revision of the inflation forecast upward necessitates a tightening of monetary policy, but on the other hand, a significant excess of supply over demand in the foreign exchange market supports a loose monetary policy. The mutual balancing of these factors determines the preservation of the parameters of the interest rate corridor without changes,” the CBA stated.

Information about the next decision regarding the parameters of the interest rate corridor will be published on September 23.