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Central Bank to prefer to keep discount rate at positive zone

29 December 2017 08:36 (UTC +04:00)

By taking into account the relative softening in fiscal policy, Central Bank of Azerbaijan (CBA) will go on pursuing conservative monetary policy, the CBA said in the statement on the main directions of the monetary policy for 2018 and the medium-term period, published on its website Dec. 29.

According to the statement, the CBA will create adequate monetary condition.

Parameters of interest corridor will be determined by taking into account the economic cycle performances, analysis of balance of inflation risks and processes in different segments of the financial market. The CBA will prefer to keep the real level of discount rate at a positive zone.

‘Taking into consideration the ability to effectively absorb the external shocks, the CBA will keep quick exchange rate mode. In order to prevent short-term change not arising from fundamental macroeconomic factors of the national currency, the CBA may limitedly interfere in the currency market’, said the statement.