On December 18, the Central Bank of Azerbaijan (CBA) decided to leave the discount rate unchanged at 7.25 percent.
As Day.Az reports with reference to the CBA, the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.
It is noted that the decision to keep the discount rate unchanged was made taking into account actual and projected inflation within the target level (4±2%) and an analysis of macroeconomic trends.
“Since the last meeting, annual inflation has remained within the target range. Thus, in November 2024, the average annual inflation was 4.4 percent. The annual increase in prices for food products was 4.4 percent, for non-food products – 2.2 percent, and services – six percent. Low inflation in the food and non-food segments has become one of the key factors supporting the achievement of the target inflation level,” the information says.
According to the Central Bank, external inflation conditions are generally stable.
“Compared to the same period last year, the global commodity price index increased by only 0.7 percent (IMF data). In addition, the strengthening of the nominal effective exchange rate of the manat (by 7.1 percent in 11 months of 2024) had an additional impact to reduce import inflation. The following decisions on the parameters of the interest rate corridor will be made taking into account actual and projected inflation, as well as the dynamics of internal and external risk factors. The Central Bank continues to analyze economic processes and monitor financial ones. markets, focusing on its core mandate, the Central Bank is determined to use all the tools at its disposal to ensure price stability,” the Central Bank emphasizes.