CBA chairman: If interest rates are increased, economic activity will decrease

17:19 - 12.06.2023

June 12, Fineko/abc.az. If interest rates rise, economic activity will decrease, Central Bank’s chairman Taleh Kazimov stated at a meeting of the Milli Majlis Committee on Economic Policy, Industry & Entrepreneurship.

ABC.AZ reports that according to CBA chairman, active increase in the discount rate will affect economic activity: "Our neighbors have agreed to this, but we do not see the need. We forecast that the share of demand at the end of this year will be 1.4%. And a slight increase in the discount rate is linked with the impact on the interbank market."

Kazimov said that active negotiations are currently underway with the Ministry of Agriculture: "We are developing new rules for the provision of agricultural loans. We are also reviewing the collateral requirements. Taking into account the risks in balanced form, we’ll take steps to mitigate the consequences."