The Central Bank of Azerbaijan has decided to cut the interest rate by 25 points from 7.75% to 7.5%, according to the CBA press service.
The lower threshold of the interest rate decreased from 6% to 5.75%, the upper threshold - from 9.5% to 9.25%.
The CBA recalled this is the 8th reduction in the interest rate this year. The interest rate was cut from 9.75% to 9.25% on February 1, from 9.25% to 9% on March 15, from 9% to 8.75% on April 26, from 8.75% up to 8.5% on June 7, from 8.5% to 8.25% on July 26, from 8.25% to 8% on September 13 and from 8% to 7.75% on October 25.
At the same time, inflation has not gone beyond the predicted level and remained below the average value of the target range since the recent meeting of the CBA's board on monetary policy. A surplus current account balance, a stable exchange rate, adequate monetary conditions and low inflation expectations had a stabilizing effect on the prices.
According to the CBA, the risks for the medium term are mainly related to external factors, in particular, to a decrease in the global economic growth rate, the influence of this factor on oil prices.
At the same time, an increase in the money supply as a result of growth in budget expenditure and inflationary expansion of consumer loans are among the internal risk factors.
The next meeting of the CBA, during which the issue of the interest rate will be considered, will be held on January 31, 2020.
