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Central Bank raises discount rate to 9.5%

05 August 2016 11:50 (UTC +04:00)

In order to increase the confidence in national currency, promote increase of manat deposits, create condition for improvement of monetary policy instruments, the Central Bank made necessary corrections to the parameters of monetary policy instruments, including interest rate corridor. In order to achieve considered growth rates in money supply, the Bank has activated sterilization operations of liquidity, started deposit operations on involvement of funds in national currency.

Taking into account the targets on macroeconomic stability, macroeconomic forecasts, inflation expectations, tendencies on balance of payment, as well as conjuncture in the financial market, the Central Bank passed a decision to increase the discount rate to 9.5% from August 8 by remaining lower and upper limit of interest rate corridor unchanged.

Increase of the discount rate aims to affect formation of real interest rates at a level which stimulates charges in the national currency and create condition for increase of confidence in manat. This step will also create condition for increase of attractiveness of the sterilization operations of the Central Bank.