Central Bank of Azerbaijan keeps discount rate unchanged

Finance Materials 16 September 2022 12:24
Baku, Azerbaijan Trend News Agency Kamran Gasimov
Central Bank of Azerbaijan keeps discount rate unchanged

The Central Bank of Azerbaijan (CBA) decided to keep the discount rate unchanged, at the level of 7.75 percent, on September 16, Trend reports citing the CBA.

The upper limit of the interest corridor remained at the level of 9.25 percent, while the lower limit stood at four percent.

"There have been no significant changes in actual inflation rate since the last monetary policy session of the Central Bank. The forecast on the possible decrease of the inflation rate under the current level remains valid by the end of 2022, given the implications of lower world food prices and recent supply chain logistics costs. The inflation rate forecast for 2023 has also been lowered," said the statement.

The Central Bank added that monetary factors kept making a restraining impact on inflation.

"The balance of payment surplus allows increasing supply in the foreign exchange market. The Central Bank's interference in the currency market is targeted at the customer. Since the last meeting, growing rates of consolidation of the nominal effective national currency rate has been one of the deterrents to inflation," the statement noted.

The bank stated that introducing a new operating monetary policy framework has been followed by an intensification of sterilization operations since the beginning of September 2022. This reinforces the downward impact of monetary factors on inflation and forms the basis for long-term price stability in the medium term. Implementing monetary policy instruments in a new configuration also lays the foundation for creating an active interbank market.