BAKU, Azerbaijan, October 29. It is still too early to fully assess the impact of the Central Bank of Azerbaijan’s (CBA) September 23 decision on the parameters of the interest rate corridor, governor of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend's correspondent reports from the event.
He made the remarks at a press conference on Thursday following a meeting on the parameters of the interest rate corridor.
However, interbank market activity has increased since the decision was made.
According to him, approximately one month has passed since the decision, which is not enough time to fully assess its results.
“I think it is still too early. We made this decision on September 23. We can see that activity in the interbank market has increased. However, one month is still a relatively short period,” Kazimov said.
The CBA governor noted that the main objective of the decision was to further boost activity in the interbank market and increase banks’ participation.
“Our primary goal is to further activate the interbank market. We did not take this step to reduce the Central Bank’s participation in that market,” he emphasized.
Kazimov added that no additional measures in the interbank market are currently planned. The Central Bank is managing liquidity in the banking system using its existing monetary policy instruments and seeking to keep the AZIR interest rate within its target range.
Addressing food inflation, the CBA governor noted that the Central Bank’s ability to directly intervene to curb price increases in this segment is limited, as the trends are largely driven by global factors. At the same time, agricultural product prices are also taken into account when analyzing price dynamics.
