"We do not expect that the Central Bank of Azerbaijan (CBA) will reduce the additional rate," this was stated in the report of Fitch Ratings international credit rating agency, APA-Economics reports.
"Annual inflation remained below the CBRA's target band (4%±2pp) in 1H24 and will average 3.5% in 2024 before increasing to 4.7% by 2026, higher than the 2.5% projected for the 'BBB' median. The CBRA has paused its easing cycle since May, and we do not expect additional rate cuts, given the expected pick-up in inflation due to increased regulated prices and the projected increase in government spending from the 2024 amended budget," noted in the report.
Noted that in its last decision on June 21, the Board of Central Bank kept the additional rate at 7.25%, the lower limit of the interest corridor at 6.25%, and the upper limit of the interest corridor at 8.25%. The next decision of the CBA on monetary policy will be announced on July 31.
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