Bank Of Baku

Real interest rate on deposit drops to 2.7% in Azerbaijan

Real interest rate on deposit drops to 2.7% in Azerbaijan
# 14 June 2011 15:22 (UTC +04:00)
According to APA-Economics calculations, as of May 1, 2011, real annual interest rate on deposit made 2.66%.

Note that real interest rate takes the inflation into consideration. Annual inflation in first quarter made 9%, in Azerbaijan.

For comparison note that, the declared interest rates on deposits made 11.79%, last year, real interest rate including 5.7%-annual inflation made 6.09%. At the same time, average interest rates on deposits made 12.98% in 2009 and real interest rates including 1.5%-inflation stood at 11.48%. Thus, decline of real average interest rates on deposits was observed. This index rose 0.03 percentage points in April and this is related with decline of inflation by 0.1 percentage point.

So the depositors can only pay the growth of consumer prices and get 2.7%-profit from the incomes on deposits.
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