OREANDA-NEWS. January 13, 2015. The Central Bank of the Republic of Azerbaijan has disseminated the statement on key directions of the monetary and financial stability policy for the year of 2015.

The Statement includes the analysis of th e CBA performance in 2014 and the key policy directions for 2015.

The Statement says that the Central Bank actively contributed to macroeconomic stability in the country in 2014 in harmony with the economic growth and diversification policy successfully pursued under the leadership of President Mr Ilham Aliyev. Despite risks from global economic environment, the country maintained macroeconomic stability and the favorable foreign position of the national economy in current year, inflation remained low, and manat proved to be a stable currency. The Central Bank flexibly responded to the FX market and ensured its rebalancing. In 2014, given trends in the economic cycle, the Central Bank eased the monetary policy. Over the year financial stability sustained, the banking sector elevated its role in fostering economic growth and investment activity, and access to financial services and resources broadened. Cost of banks’ financing sources dropped, accompanied by key measures on optimization of expenses on business loans.

The monetary and exchange rate policy for 2015 will be implemented, adequate to global economic risks, and strategic development challenges of the national economy. The monetary policy will flexibly respond to both inflation and deflation risks. The nature and scope of the response will depend on supply and demand. Stability of the exchange rate of manat will be a top priority due to its vital role in maintaining social welfare and investment activity in 2015. Depending on the economic situation, the monetary policy will be more flexible to effectively underpin economic growth, in parallel with efforts to improve the strategic framework of this policy.

More prudential supervision will be exercised over financial stability in the banking sector, aided by counter-cyclic regulation. Higher access to business loans, stimulation of real sector crediting and development of banking – financial infrastructure will be prioritized. The Bank will continue efforts to decrease interest rates.