September 18, 2021 2:05 p.m. (UTC + 04:00)
Monetary conditions in Azerbaijan are becoming anti-inflationary and no significant change in nominal interest rates on loans and deposits has been observed, Tendency reports citing a report by the Central Bank of Azerbaijan (CBA).
Nominal interest remains unchanged in the face of rising inflation, resulting in lower real interest, according to the report.
At the same time, the excess execution of the state budget and the growth in the balance of funds in the single treasury account ensured an increase in the monetary base (by 4.5% in the first 8 months of 2021), adds the report.
In August 2021, the loan portfolio of local banks increased by 1.6%, the BCA said.
“From January to August 2021, the loan portfolio of banks increased by 7.4% compared to the same period of 2020. Consumer loans increased by 12.9%, mortgages – by 12.2 % “, the report reads.
“In addition, the trend towards de-dollarization has continued in the country. Thus, in August, dollarization fell to 44.7% on personal deposits and to 26.8% – on loans, ”said the Central Bank.
“When making decisions on monetary policy, the central bank also pays attention to an increase in manat savings,” the report adds.
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