In 2012 the country economy and export kept diversifying, fuelled by heightened economic welfare and macroeconomic sustainability. The non-oil economy was the driving force of the economic growth with its 10.4% jump over ten months of the current year. Economic growth and employment were affected both by internal and external demand.

The Central Bank targeted maintenance of price and financial stability in the country in harmony with declared monetary policy directions. To more effectively discharge this mandate, the Bank continued to improve monetary and macro prudential policy frameworks.

The exchange rate of manat remained stable, while money supply kept pace with the inflation target. Inflation in the country maintained a single-digit level, with average annual inflation rate being far below that of partner countries (1.3%). Average interest rates on loans tended to decline on this background.

To enable interest rates to further decline and support economic growth in the non-oil sector given the optimum level of inflation, Management Board of the Central Bank took a decision to shift the refinancing rate to 5% from 5.25% from 10 December 2012 onward.