BAKU, Azerbaijan, April 11. The Asian Development Bank (ADB) expects the Central Bank of Azerbaijan (CBA) to keep the refinancing rate at least until the middle of this year, Trend reports.
According to the bank, the continued pegging of the Azerbaijani manat to the US dollar has played a role in containing imported inflation pressures.
"Inflation control is critical, and the government must closely monitor price trends during the predicted timeframe. Maintaining exchange rate stability will help counteract the consequences of imported inflation. CBA is expected to maintain its refinancing rate stable until at least mid-2024, closely studying price movements and consumer sentiment before considering modifications," ADB said.
As previously reported, CBA decided to reduce the refinancing rate from 7.75 percent to 7.5 percent in its most recent meeting on March 31, 2024. The maximum limit of the interest rate corridor was reduced from 8.75 percent to 8.5 percent, while the lower limit stayed at 6.25 percent.
"This decision was made considering the comparison of current and forecast inflation with the target (4±2 percent), stability of inflation expectations, and changes in the balance of risks," the CBA said.
On May 1, the Central Bank will make public its next decision on the interest rate corridor parameters.