Central Bank: Measures on reduction of interest rates will be continued in 2015

Baku: Central Bank of Azerbaijan has issued a statement on main directions monetary and financial stability policy for 2015.

The statement says that in spite of risks arisen from global economic environment, macroeconomic stability and useful external position of national economy have been saved in the country, inflation remained at single-digit level, manat approved itself as a stable currency: “Central Bank quickly responded to the processes in the currency market and restored balancing here. Taking the inclinations in the economic cycle in 2014 into account, the Central Bank softened its monetary policy. Sustainable financial stability was ensured throughout the year, role of banking sector in economic growth and support of investment activity increased, access to financial service and resources expanded”.

The statement also said that monetary and exchange rate policy for 2015 will be conducted through taking global economic risks and strategic development challenges of national economy into consideration. At the same time, monetary policy will respond to both inflation and deflation risks: “Character of this response will change depending on demand and supply factors. Stability of exchange rate of manat will be priority in 2015. Quickness of monetary policy will be increased in order to effectively support economic growth, works for improvement of strategic frame of this policy will continue”.

In 2015, the CB will strengthen prudential control for ensuring o financial stability in banking sector, continue countercyclical regulation. Moreover, extension of access to business credits, stimulation of lending of the real sector, development of banking-financial infrastructure will be key priorities. Measures on reduction of interest rates will be continued.