The Central Bank of Azerbaijan (CBA) will make its next decision regarding the interest rate this week, APA-Economics reports.
On April 23, the CBA will announce its third decision on the interest rate for this year.
Since May of last year, the CBA's Board of Directors has kept the interest rate unchanged. The Central Bank has maintained the interest rate at 7.25%, the lower bound of the interest rate corridor at 6.25%, and the upper bound at 8.25% unchanged.
The CBA has stated that future decisions regarding the parameters of the interest rate corridor will depend on the dynamics of actual and projected inflation, as well as external and internal risk factors: "To ensure price stability, the CBA will use all available tools at its disposal. If actual and projected inflation decreases, the possibility of reducing the parameters of the interest rate corridor can be reviewed. At the same time, the Central Bank will respond adequately if inflation risks materialize."
Note that inflation in Azerbaijan has continued to rise since the beginning of the year. According to the latest figures released by the State Statistics Committee, the annual inflation recorded in March was 5.9%. In other words, the actual inflation recorded is within the CBA's target range (4±2%). This means that the CBA is unlikely to rush into changing the interest rate in this week's decision and may choose to keep the rate stable once again.
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