BAKU: The average interest rate on one-day unsecured transactions has been formed within the interest rate corridor, Trend reports.

According to the Central Bank of Azerbaijan (CBA), monetary policy instruments are used to neutralize the influence of autonomous factors on monetary conditions.

“Open market operations and active use of tools provided by standing facilities have ensured movement in the weighted average interest rates on transactions concluded between banks in the national currency in the money market, both unsecured and secured, within the CBA’s interest rate corridor.

The average interest rate for overnight unsecured transactions (1D AZIR) was 6.52 percent (6.29 percent in February) and has formed within the interest rate corridor. Reforms continue towards strengthening the impact of money market interest rates on other interest rates, including deposit and lending rates,” the CBA added.

Meanwhile, the CBA lowered the refinancing rate from 7.75 percent to 7.5 percent on March 28.

The upper
limit of the interest rate corridor was reduced from 8.75 percent to 8.5 percent, while the lower limit was kept unchanged at 6.25 percent.

The CBA’s next decision on the interest rate corridor parameters will be announced on May 1.

Source: Trend News Agency