Central bank governor says policy rate impact on deposits and loans is strengthening

The impact of the policy rate on interest rates for manat-denominated deposits and loans in Azerbaijan is becoming increasingly evident.

According to Report, Central Bank Governor Taleh Kazimov said this at a press conference.

He noted that the final stage of the Central Bank of Azerbaijan’s new monetary policy framework began in 2024, when the policy rate started to be actively used as a monetary policy instrument.

Kazimov said that over the past six months, cuts in the policy rate have led to a decline in average interest rates on new manat-denominated time deposits of individuals by 0.11 percentage points to 9.5%, and on new time deposits of legal entities by 0.78 percentage points to 5.87%.

He added that the average annual interest rate on new loans issued to individuals fell by 0.8 percentage points to 15.95%, while the average rate on new loans to legal entities decreased by 0.91 percentage points to 12.32%.