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CB reduces discount rate to 3%

10 July 2015 15:27 (UTC +04:00)

Baku - APA-Economics. On the background of global economy and recent processes in the region, Azerbaijan’s economy preserves its sustainability and continues stable development.

According to Central Bank of Azerbaijan, important corrective measures taken in the macroeconomic policy as an adequate to the new inclinations in the economic cycles have been directed to the protection of sustainability of the national economy.

Purposeful exchange rate policy had a positive impact on strengthening of international competitiveness of the economy and strategic sustainability of the Balance of Payment.

At the same time, macroeconomic stability has been preserved, the inflation remained at single-digit level in the first half of 2015. During the past two months, currency market and exchange rate of manat significantly stabilized, CB’s currency stocks increased.

Central Bank also continued its purposeful activity for support of economic diversification processes and economic growth. One of most important directions in this sphere is cheapening of bank services, especially reduction of interest rates. The measures in this regard create condition for reduction of interest rates.

At the same time, taking into account the acceptable level of inflation and dynamic of money supply, conditions are created for softening of monetary policy.

In order to strengthen the financial support to the economic growth in non-oil sector, stimulate the investments by accelerating reduction of interest rates, create a monetary basis for optimization of value of the population’s mortgage lending, Central Bank’s Management Board has passed a decision on reduction of discount rate from 3.5% to 3% from July 13, 2015.