BAKU, Azerbaijan, September 18 – The Central Bank of Azerbaijan (CBA) has decided to maintain the refinancing rate at 7.25 percent, with the interest rate corridor limits at 8.25 percent and 6.25 percent, respectively.
The decision was made based on actual and projected inflation levels within the target range of (4±2%), as well as internal and external inflation factors. Despite a slight increase in annual inflation, it remains within the target range.
The CBA reported positive external and internal economic indicators, such as a surplus in the current account, an increase in strategic foreign exchange reserves, and support for foreign currency demand due to government expenditures.
Monetary policy tools are being used to maintain inflation stability and manage liquidity in the banking system. The CBA will continue interventions in the foreign exchange market to support government expenses and sterilize money supply increases.
Looking ahead, the CBA will reassess key macroeconomic indicators in October and make decisions based on inflation dynamics and risk factors. The current decision takes effect on September 19, 2024.
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