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Central Bank of Azerbaijan keeps interest rate unchanged

19 June 2021 16:28 (UTC+04:00)
Central Bank of Azerbaijan keeps interest rate unchanged

By Trend

The Central Bank of Azerbaijan (CBA) made a decision to keep the interest rate unchanged at the level of 6.25 percent, Trend reports with reference to the CBA.

The upper limit of the interest rate corridor was left at 6.75 percent while the lower limit at 5.75 percent.

The CBA said that the decision was made taking into account the latest trends in changing inflation, the possible impact of cost factors and demand on prices in the short and medium-term.

The analysis shows that there was no significant change in the balance of inflation risks between the factors.

Rising oil prices, improvement of external balance, exchange rate stability, which is the main political anchor, rising world food prices, countercyclical fiscal policy and the expected monetary expansion are the counterbalancing factors.

Although non-monetary inflation has risen slightly, core inflation remains stable. The inflation rate is estimated to remain within the target corridor of the CBA by the end of the year.

The CBA stressed that further decisions on the parameters of the interest rate corridor will be made taking into account the comparison of the actual and projected inflation with the target parameters and changes in the balance of risks in the medium-term forecast.

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