Central Bank of Azerbaijan cuts discount rate to 8.25%

The Central Bank of Azerbaijan (CBA) has reduced the discount rate from 8.5% to 8.25%, with the decision to enter into force on July 29, chairman of the CBA Elman Rustamov said at a press conference.

According to him, the upper limit of the percentage corridor was reduced from 10.5% to 10.25%, and the lower one from 6.5% to 6.25%.

Rustamov noted that the reduction in the discount rate and interest rate parameters is preconditioned by the stabilization of oil prices, low inflation and a stable macroeconomic situation in Azerbaijan.

This is the fifth reduction in the discount rate by the CBA for 2019. Since the beginning of the year, it decreased 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, and from 8.75% to 8.5% on June 7.