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Review: Regulation of inflation factors in a preventive mode became actual again in Azerbaijan this year

15 November 2011 07:37 (UTC +04:00)

According to the review, taking these factors into account, the Central Bank held anti-inflation policy in the current year. It is noted that, during the year, a number of countries have tightened monetary policy. As a result, only the last 4 months the monetary policy has been tightened in 38 states.

Given the recovery in aggregate demand, inflation factors and forecasts of the balance of payments, from March 1, the Central Bank decided to rise the discount rate from 3% to 5%, and from May 6 - up to 5.25%. This solution is particularly aimed at empowering the Central Bank to sterilize the excess money supply. In January-September, the CBA issued notes for AZN 987 mln. As a result, AZN 617 mln notes were put to auctions, AZN 519.7 mln were placed.

For the first nine months of 2011 the money supply has changed in an adequate form to requirements of the economy, and at the same time was under the influence of seasonal factors. During the reporting period, an increase in the monetary base amounted to 12.7% of the money supply (M3) - 20% of the money supply in manats (M2) - 16%.