BAKU, Azerbaijan, July 26. The decision of the Central Bank of Azerbaijan (CBA) to leave the discount rate unchanged was made taking into account updated macroeconomic forecasts as well as external and internal factors affecting inflation, Deputy Head of the Market Analysis Department at Gazprombank Gulnara Khaidarshina told Trend.
According to her, the regulator continues to implement anti-inflationary monetary policy and reforms aimed at strengthening transmission mechanisms.
"The increase in the interest rate and other parameters of the interest rate corridor, the appropriate application of monetary policy tools in the new configuration, the increase in the norms of obligatory reserves, and changes in macroprudential requirements limit inflationary pressure in the economy," Khaidarshina believes.
She highlighted that, following the results of today's meeting, the CBA did not give a transparent assessment of the balance of risks, but among the potential pro-inflationary factors, it again noted the accelerated expansion of domestic demand. In addition, according to the regulator, supply-side inflation may be affected by disruptions in logistics chains.
In addition, the CBA decided to leave the discount rate unchanged at 9 percent, and the upper and lower limits of the interest rate corridor also remained unchanged at 10% and 7.5% on July 26.