Azerbaijan's Central Bank (CBA) has lowered the benchmark interest rate from 8.5% to 8%.
According to the CBA press service, the upper limit of the interest rate corridor was lowered from 9.5% to 9% and the lower limit from 7% to 6.5%.
"This decision was made in light of the presence of actual and forecast inflation in the target corridor (42%), the stabilization of inflation expectations, and excess supply in the foreign exchange market. The annual inflation rate has declined quicker than predicted since the last Governing Council monetary policy meeting. In November 2023, 12-month inflation was 2.6%. This is the third month in a row that annual inflation has remained within the target range. Monthly price trends continue to fall from a year ago. In November, the consumer price index fell by 0.2%, which is unusual for this time of year," the statement reads.
Annual inflation declined due to the impact of external and internal factors.
The bank added that the strengthening of the manat exchange rate by 19.5% in January-November played an important role in reducing imported inflation.
