10 July 2015, Baku: The Azerbaijani economy remains resilient amid recent processes in the global economy and in the region continuing its stable growth. Critical corrective measures in the macroeconomic policy in response to the current economic cycle target higher resilience of the national economy.
The dedicated exchange rate policy has had a positive effect on higher competitiveness of the economy and strategic sustainability of the balance of payments. Macroeconomic stability was maintained aided by low single-digit inflation in Half I, 2015. The FX market and the exchange rate of manat have considerably stabilized over recent 2 months with rise in foreign exchange reserves of the Central Bank.
The Central Bank of Azerbaijan also continued its task-oriented performance related to support for economic growth and the diversification of the national economy along with maintenance of macroeconomic stability in the country.
Cheaper banking services, with particular emphasis on low interest rates, need to be promoted as a top priority. Recent efforts related to regulation of the banking sector allow interest rates to drop.
The monetary policy can be further eased given the acceptable level of inflation and dynamics of money supply.
The Management Board of the Central Bank decided to shift the refinancing rate to 3% from 3.5% from 13 July onward to enhance financial support for the non-oil economy growth, stimulate investments through accelerating drops in interest rates, pave the way to cost optimization of SME and mortgage lending of the population.