Azerbaijan names target inflation rate for upcoming year

By Trend

The ultimate goal of Azerbaijan’s monetary policy in 2021 will be to manage inflation within 4 ± 2 percent, Trend reports on Dec.29 referring to the country’s Central Bank of Azerbaijan (CBA).

According to the CBA, the priority goal of monetary policy in 2021 will also be price stability, which is the main guarantor of confidence in the national currency. Reforms aimed at strengthening the possibilities of influencing inflation will continue.

The bank noted that next year, as in previous years, the goal will be to change the consumer price index over the past 12 months. To achieve the inflation target, the interim monetary policy objectives will be to use the exchange rate, money supply, and interest rates taking into account the transmission characteristics of decisions. When carrying out the monetary policy, the short- and medium-term transmitting of the national currency manat to inflation will be taken into account.

Next year, the balance in the foreign exchange market will also depend on the state of the balance of payments, demand, and supply of foreign currency by the state. If necessary, preventive measures will be taken together with the government to ensure a balance in the foreign exchange market. The work on streamlining the currency regulation will continue in 2021.

The Central Bank added that maintaining the stability of the manat exchange rate will act as the main anchor of macroeconomic stability in both the short and medium-term.

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