TODAY.AZ / Business

National Bank of Azerbaijan raises discount rate to 15%

10 June 2008 [13:46] - TODAY.AZ
The National Bank of Azerbaijan has passed a decision at a board meeting to raise the discount rate from 14% to 15%, leaving the interest rate corridor unchanged.
Also, the Board made a decision to increase compulsory reserve requirements for national and foreign currency to 12% from 10% effective July 16.

The central bank said in a statement that the benchmark rate was increased because the domestic demand, including the rapid expansion of capital and consumer expenses against the backdrop of the economic boom and sharp upsurge of export incomes condition notable change of the macroeconomic equilibrium and the natural prices hike.

"At the same time, global factors tend to increase influence on the domestic macroeconomic balance. This causes the downtrend of real interest rates on loan and deposits and the natural heating of the economy. These factors call for a prompt reaction of the monetary policy to the macroeconomic trends. So, the National Bank carries out consistent adjustment of the monetary policy. Several effective decisions on the exchange and monetary policies have been taken recently," said the central bank.

/APA/


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