Central bank cuts interest rate to boost economy
Azerbaijan`s central bank has cut its key interest
rate from 5% to 3% to boost the economy.
The measure, passed by the National Bank of Azerbaijan (NBA) steering board, seeks to maintain economic activity in the domestic debt market and support financial sector stability amid the deepening global crisis and shrinking liquidity in world financial markets, the NBA said. The decision is in line with the overall softening of the monetary and credit policy, a goal the bank had set for 2009.
Also, the upper range of the rates was reduced to 8% from 10%, while mandatory hedging on bank liabilities in both manats and foreign currency was lowered to 0.5% from the current 3%.
The central bank cut interest rates several times between October 2008 and February 2009, gradually bringing them from 15% to 5%.
The measure, passed by the National Bank of Azerbaijan (NBA) steering board, seeks to maintain economic activity in the domestic debt market and support financial sector stability amid the deepening global crisis and shrinking liquidity in world financial markets, the NBA said. The decision is in line with the overall softening of the monetary and credit policy, a goal the bank had set for 2009.
Also, the upper range of the rates was reduced to 8% from 10%, while mandatory hedging on bank liabilities in both manats and foreign currency was lowered to 0.5% from the current 3%.
The central bank cut interest rates several times between October 2008 and February 2009, gradually bringing them from 15% to 5%.
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