(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 28. The Central Bank ofAzerbaijan (CBA) lowered the refinancing rate from 7.75 percent to7.5 percent on March 28, Trend reports.
According to the CBA, the upper limit of the interest ratecorridor was reduced from 8.75 percent to 8.5 percent, while thelower limit was kept unchanged at 6.25 percent.
"This decision was taken taking into account the comparison ofactual and projected inflation with the target (4±2 percent),stabilization of inflation expectations, and changes taking placein the balance of risks. Reduction of the upper boundary of theinterest rate corridor and the discount rate, taking into accountthe preservation of forecasted inflation at the target level, isaimed at easing monetary conditions. Keeping the lower boundaryunchanged serves to optimize the width of the interest ratecorridor. When determining these parameters of the interest ratecorridor, the scale of their impact on interest rates in theinterbank money market was also taken into account," the commentaryof the CBA reads.
The CBA emphasized that annual inflation rates have continued todecline since the last session.
"The 12-month inflation rate in February 2024 was 0.8 percent,and 12-month core inflation was 1.4 percent. Annual food deflationwas 0.3 percent, non-food inflation was 1.4 percent, and serviceinflation was 2.3 percent. The decline in annual inflation is dueto the influence of external and internal factors," the CBAadds.
To note, the next decision of the Central Bank on the parametersof the interest rate corridor will be made public on May 1.
Stay up-to-date with more news on Trend NewsAgency's WhatsApp channel
MENAFN28032024000187011040ID1108031673
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.