Monday, 03, August, 2020

The Central Bank keeps interest rate unchanged at 15% per annum, the CB said in a statement. Following the regular meeting held on Thursday, the CB Board announced that the interest rate shall be set at 15% per annum.

“This decision was taken in order to maintain the current axis of monetary policies aimed at ensuring positive real interest rates in the backdrop of risks and factors that simultaneously increase and reduce inflation in the economy,” the statement noted.

The Bank underscored that in the context of the pandemic, increased budget expenditures and stimulus packages have been key factors in supporting economic processes.

According to the Central Bank, interest rates facilitated economic growth in the first year-half despite the lockdown measures. In June-July this year, there was a relatively slow decline in prices and a slight deviation from the inflation forecast.

At the same time, the Central Bank is considering the possibility of cutting the interest rate at the next meeting based on the forecasted decrease of inflation rate.

Prior to the outbreak of coronavirus pandemic, the Central Bank had kept the rate unchanged at 16%. On April 14 this year, the rate was cut by 1 percentage point.

At the June 5 meeting, the CB Board members set the average interest rate on loans at around 21%.

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