BAKU, June 7 (Reuters) - Azerbaijan’s central bank said on Friday it had cut its refinancing rate to 8.50% from 8.75% as inflation expectations are stable.
The central bank also adjusted its rate corridor, setting a lower boundary of 6.5% and an upper boundary of 10.5%, compared with 6.75 and 10.75% before.
“Due to the stability of inflationary expectations, favourable external conditions and the update of macroeconomic forecasts in the country, the central bank decided to reduce the rate to 8.5%,” the bank said in a statement.
It did not change its annual inflation forecast of 4% with a possible fluctuation of 2% for this year.
The country’s currency reserves rose by 6.2% in the first five months of 2019 to $47.5 billion, the bank said.
Real economic growth in January-April was 2.1%, while the trade balance was in surplus by $2.5 billion.
The bank is due to hold its next policy meeting on July 26. (Reporting by Nailia Bagirova; Writing by Margarita Antidze; Editing by Catherine Evans)