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Central Bank of Azerbaijan cuts refinancing rate

31 January 2020 11:25 (UTC +04:00)

The Board of the Central Bank of Azerbaijan (CBA) passed a decision to cut the refinancing rate by 0.25 percent, with which the discount rate was reduced from 7.50 percent to 7.25 percent, APA reports.

The limits of the refinancing rate corridor are within ±1.75 percent of the base rate.

Note that earlier on December 13, 2019, the CBA decided to lower the interest rate by 0.25 percentage points from 7.75% to 7.50%. The upper and lower limits of the interest rate band were determined in the range of ± 1.75% of the discount rate (9.25% and 5.75%).

Recall that the parameters of the interest rate corridor in 2019 at the Central Bank were discussed 8 times and a decision was made to gradually reduce the interest rate from 9.75% to 7.5%. In general, since the beginning of 2018, the interest rate has been halved. This year, next decisions on the parameters of the interest rate corridor will be announced on March 19, May 1, June 19, July 30, September 18, October 30 and December 18.