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High discount rate not to have big impact on Azerbaijani banks

16 November 2017 [12:26] - TODAY.AZ

By  Trend


The preservation of a high interest rate at 15 percent will not have a big impact on Azerbaijani banks, Zakir Nuriyev, head of the Azerbaijan Banks Association, told Trend Nov. 15.

"Today the situation in the Azerbaijani banking market is gradually stabilizing,” he said. “So I think that the preservation of the discount rate at 15 percent will not have a big impact on the banking sector."

Nuriyev added that the discount rate depends on the current macroeconomic processes in the country.

"The Central Bank of Azerbaijan (CBA) makes a decision to change or keep the discount rate, taking into account the macroeconomic situation and indicators in the country," he said. “The CBA is likely to think that at present, the situation is not rather favorable for reducing the discount rate. But I would like to stress that in fact there are tendencies for reducing the discount rate on the market.”

A decision was made to keep the discount rate at the level of 15 percent at another meeting of the CBA board on November 15.

The CBA explains its decision to keep the discount rate at the previous level by mentioning some factors.

Among those factors are economic activity and the continuing growth of the non-oil sector (by 2.5 percent in January-September 2017), an increase in consumer confidence, export expansion and expansion of import substitution processes, an increase in oil prices, an increase in the manat exchange rate by 4 percent since early 2017, monetary conditions and inflationary processes.

URL: http://www.today.az/news/business/166856.html

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