2024-08-01 10:23:50
On July 31, the Central Bank of Azerbaijan (CBA) decided to leave the key rate unchanged at 7.25 percent, Day.Az reported on Wednesday.
According to the Central Bank of the Russian Federation, the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.
As noted by the Central Bank of the Russian Federation, the decision to keep the key rate unchanged was made taking into account the formation of actual inflation rates in accordance with the forecast, maintaining expected inflation at the target level (4±2%), as well as the dynamics of internal and external inflation factors.
“Although annual inflation has increased since the last meeting, it remained below the lower limit of the target range (4±2%). Thus, in June 2024, 12-month inflation was 1.1%, core inflation was 0.8%. Annual food inflation was 0.2%, non-food inflation was 1%, and inflation in the services sector was 2.4%,” the regulator said in a statement.
In addition, the Central Bank stated that the external inflation background is generally stable.
“However, the continuing decline in prices observed in previous months has stopped, and some products are seeing price increases. An additional contribution to the reduction in import inflation during this period was made by the increase in the nominal effective exchange rate of the manat (3% for 6 months of 2024).
The foreign trade balance, which is the main component of the balance of payments, recorded a positive balance of 4 billion US dollars for the first 6 months of 2024. During this period, the country’s strategic foreign exchange reserves increased by 1.8% and reached 69.7 billion US dollars. In particular, the Central Bank’s foreign exchange reserves increased by 1.1% and reached 11.7 billion US dollars,” the CBA said.
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