The Central Bank’s Board raised the discount rate from 9.5% to 15%, according to the CBA report.
According to Turan, the upper limit of percentage corridor for liquidity operations was also increased by the Board from 15% to 18%, and the bottom was increased from 4% to 12%.
The Central Bank explained the decision with necessary anti-inflationary measures.
‘Taking into account changes in internal and external factors affecting the inflation, the need for anti-inflationary measures has arisen. This solution is also dictated by the terms of strengthening confidence in the national currency. In addition, the decision was made taking into account the balance of payments situation and trends in the currency market,’ the Central Bank reported.
Recall that the discount rate was last increased on August 8 - from 7% to 9.5%.
Note that the increase in inflation contributes to a constant growth of the dollar. Since 26 May the official rate of US dollar in Azerbaijan has been growing steadily. In June, July and August, the official dollar exchange rate rose by 3% each month.
A weak USD rate was last recorded on May 26 – 1 USD / 1.49 AZN. The dollar rose until September 9. The official exchange rate on that day amounted to 1 USD / 1.6403 AZN. For the first time in the three months on that day the official dollar exchange rate was slightly lowered to 1.6390 AZN. ------71D
Economics
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