Board of the Central Bank of Azerbaijan (CBAR) has taken a decision on dropping interest rate from 8,25% to 8% by reducing it 25 base points, ONA reports citing CBAR.
Upper and lower limits of rate corridor are identified to ±1,75% range to the interest rate.
Actual inflation remains lower than the middle of the target range, changes can’t be observed in the dynamics of the short-term inflation expectations. According to the updated forecasts, inflation will remain within the target range (4±2%) by being slightly higher than the average level of the corridor by the end of 2019”, CBAR stated.
“The next decisions regarding rate corridor will be taken depending on the compliance of actual and forecasted inflation to the target and impact of realization of the internal and external risks to the inflation”, CBAR noted.
This decision takes force on September 13, 2019. The next decision of the Board of CBAR on parameters of rate corridor will be unveiled to the public on October 25, 2019, and press conference will be held on this date in accordance with the schedule.