The Director of the Financial Stability Department of the NBU, Pervin Dadashova, made this statement. According to her, the National Bank responded to the acceleration of inflation by raising the discount rate. This move is primarily aimed at curbing the inflation expectations of key economic agents, including the population and businesses.
“At the same time, this is significant for the financial sector, as it will indicate that the prolonged decline in commercial rates will come to a halt,” noted Dadashova.
She added that there are also factors that could further encourage banks to offer even more attractive terms for placing funds.