CBA: Impact of refinancing rate on deposit, credit interest rates increases

In Azerbaijan, the impact of the refinancing rate on deposits placed in manats and loans granted in manats is being felt more and more, Taleh Kazimov, Governor of Central Bank of Azerbaijan (CBA), said at today's press conference, Report informs.

"We assess this impact. Undoubtedly, the final stage of our new monetary policy framework began in 2024. Since then, we have started to apply the refinancing rate as a policy tool. For example, in the last 6 months, we have lowered our refinancing rate. As a result, the average interest rate on new time deposits in manats for individuals decreased by 0.11 percentage points to 9.5%, and the average interest rate on time deposits for legal entities decreased by 0.78 percentage points to 5.87%. In addition, the average annual interest rate on new loans granted to individuals decreased by 0.8 percentage points to 15.95%, and the average annual interest rate on new loans granted to legal entities decreased by 0.91 percentage points to 12.32%," Kazimov stated.