Central bank may further reduce rates
The Central Bank of Azerbaijan (CBA) may continue downward tendency in interest rates in the future, the CEO of CBA Elman Rustamov told reporters on Wednesday,,Trend news agency reported.
According to the decision of CBA Board, starting December 10, the interest rate was reduced from 5.25 percent to 5 percent.
"This year, the inflation rate was very low, and given the long-term inflation tendency, the Central Bank decided to correct the discount rate. Moreover, interests on deposits and loans in commercial banks have reduced, which is also due to inflation," Rustamov said.
He said such an inflationary trend will continue, and decisions can be taken in the future to reduce the refinancing rate.
The average annual inflation in the country (1.3 percent) was significantly lower than the level of inflation in the countries of trading partners.