The Central Bank of Azerbaijan increased from February 15, 2016 the discount rate from 3% to 5%. The interest rate corridor was also formed by the CBA: interest rates on continuous operations for absorption and liquidity provision are now forming 2% per annum at the bottom and 10% at the top of the interest rate corridor boundaries, symmetric with respect to the key rate. The upper limit is increased by 5 points.
In fact, the bank returned to a rate which operated until 10 December 2012.
Measures are taken to optimize macro index forecasts and stabilize the market price in the medium term.
The expert Samir Aliyev believes that the CBA was late with this decision, which, in his opinion, had to be taken after the devaluation of the manat.
"This step of the CBA is aimed at reducing inflation and the increased activity of the manat," he wrote on his page on Facebook.
According to him, to satisfy the requests of banks the Central Bank will increase the manat supply, which can lead to higher prices of loans and reduced business activity. "We see that keeping the price stability is considered higher priority than economic activity," says Samir Aliyev. -0-
Economics
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Azerbaijan’s economic growth is expected to continue in the coming years, although forecasts from ING Group and the United Nations (UN) present slightly differing views on the pace of recovery. ING Group, the largest banking institution in the Netherlands, predicts modest growth in Azerbaijan’s gross domestic product (GDP), while the UN offers a more optimistic outlook.
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The average age of taxi cars in Azerbaijan has dropped from 15 to 7 years, according to a statement from the Azerbaijan Ground Transport Agency (AYNA), which attributes this change to the implementation of reforms.
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Kazakhstan has bolstered its position in international grain markets by resuming exports to Iran and Azerbaijan, according to the country’s Ministry of Agriculture.
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