BAKU, Azerbaijan, Feb. 2
By Zeyni Jafarov - Trend:
The Central Bank of Azerbaijan (CBA) has given a primary forecast for inflation in the country in the range of four percent amid the expectations of growth in aggregate demand with the support of the fiscal policy, Seymur Ibadov, head of the research and investment consulting department of Unicapital OJSC, told Trend on Feb. 1.
"The four-percent-inflation rate is the rate that the CBA is aiming at in 2021 and, proceeding from this, the likelihood of a sharp decline in the interest rate during the coming year seems minimal," the head of the department added.
Ibadov stressed that at the same time, the interest rate will remain low for some time as a result of the continuation of the soft monetary policy.
Referring to the Azerbaijani capital market, the head of the department stressed that maintaining a low-interest rate will further reduce the inflation rate, which will directly have a positive effect on the local capital market.
Earlier, the head of the CBA Elman Rustamov announced the possibility of the participation of the banking sector in the capital market only through the creation of investment companies. However, the aim of the CBA is to allow the banks to become players in the capital market directly, as banks are very active participants.
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