BAKU, Azerbaijan, October 29. It is still too
early to fully assess the impact of the Central Bank of
Azerbaijan’s (CBA) September 23 decision on the parameters of the
interest rate corridor, governor of the Central Bank of Azerbaijan
(CBA) Taleh Kazimov said, Trend's correspondent reports from the event.
He made the remarks at a press conference on Thursday following
a meeting on the parameters of the interest rate corridor.
However, interbank market activity has increased since the
decision was made.
According to him, approximately one month has passed since the
decision, which is not enough time to fully assess its results.
“I think it is still too early. We made this decision on
September 23. We can see that activity in the interbank market has
increased. However, one month is still a relatively short period,”
Kazimov said.
The CBA governor noted that the main objective of the decision
was to further boost activity in the interbank market and increase
banks’ participation.
“Our primary goal is to further activate the interbank market.
We did not take this step to reduce the Central Bank’s
participation in that market,” he emphasized.
Kazimov added that no additional measures in the interbank
market are currently planned. The Central Bank is managing
liquidity in the banking system using its existing monetary policy
instruments and seeking to keep the AZIR interest rate within its
target range.
Addressing food inflation, the CBA governor noted that the
Central Bank’s ability to directly intervene to curb price
increases in this segment is limited, as the trends are largely
driven by global factors. At the same time, agricultural product
prices are also taken into account when analyzing price
dynamics.
