Azerbaijani Central Bank stresses mitigation of monetary situation

The money supply increased by seven percent in Azerbaijan compared to early 2019, which is an acceptable indicator for regulating the inflation rate, Elman Rustamov, chairman of the Central Bank of Azerbaijan (CBA), said.

Rustamov made the remarks at the press-conference in Baku, Trend reports.

“The economic growth maintains positive dynamics,” he added. “The real economic growth was 2.4 percent during six months since early 2019 compared to the same period of 2018. The non-oil sector increased by 3.2 percent, mainly due to trade.”

“Investments in the non-oil sector increased up to 5.1 percent in January-June 2019,” Rustamov added. “The business confidence index, calculated according to the monitoring of the real sector, has grown for the last month in refining industries (besides oil industry) and services.”

“Thus, a monetary situation is being mitigated in the country,” he said.

The maximum interest rates on insured deposits in Azerbaijani banks also decreased since July 1 in addition to the change in the parameters of the discount rate by the CBA.

According to the Central Bank, this must help to reduce the cost of credit resources for the banks, and, as a result, have an impact on the reduction of interest rates on the loans issued by them to customers.