Central bank again cuts interest rates
Azerbaijan`s central bank has lowered annual
interest rates for loans of 5% to 8%, effective on Monday. It was
the fourth time in four months that the bank cut rates.
Also, the upper range of the rates was reduced from 13% to 10%, according to a decision by the National Bank of Azerbaijan (NBA).
The NBA said the measure seeks to bolster the macroeconomic balance, financial sector stability and economic activity in the domestic market in the conditions of persistent global economic crisis.
Moreover, mandatory hedging on bank liabilities in both manats and foreign currency was reduced from the current 6% to 3%, the bank told AssA-Irada.
Further, the central bank last lowered interest rates from 10% to 8% on December 1. The mandatory hedging percentage was then reduced from 9% to 6%. The measure followed two similar decisions in October 2008 that sought to boost activity in the domestic debt market and increase the liquidity of local banks, as well as to increase the demand for crediting transactions.
Also, the upper range of the rates was reduced from 13% to 10%, according to a decision by the National Bank of Azerbaijan (NBA).
The NBA said the measure seeks to bolster the macroeconomic balance, financial sector stability and economic activity in the domestic market in the conditions of persistent global economic crisis.
Moreover, mandatory hedging on bank liabilities in both manats and foreign currency was reduced from the current 6% to 3%, the bank told AssA-Irada.
Further, the central bank last lowered interest rates from 10% to 8% on December 1. The mandatory hedging percentage was then reduced from 9% to 6%. The measure followed two similar decisions in October 2008 that sought to boost activity in the domestic debt market and increase the liquidity of local banks, as well as to increase the demand for crediting transactions.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!