Central Bank of Azerbaijan increased its refinancing rate by 200bps to 5.0%
On January 15, 2016, Central Bank of Azerbaijan increased its refinancing rate from 3.0% to 5.0% – the first increase since July 13, 2015. At the same time, it widened the interest rate corridor, increasing its lower band from 0.1% to 2.0% and its upper band from 5.0% to 10.0%. According to the Central Bank, the rate increase will help to increase local currency deposits and improve trust in manat.
Inflation rate at 13.7%% y/y and 5.8% m/m in January 2016
Annual CPI inflation rate increased to 13.7% in January 2016, up from 7.7% in the previous month, according to AzSTAT. Food prices were up 18.5% y/y (+9.0ppts m/m), non-food prices were up 17.3% y/y (+6.2ppts m/m), and service prices were up 4.4% (+2.1ppts m/m).
On a monthly basis, inflation rate was at 5.8% in January 2016. Food prices were up 8.7% (+4.3ppts m/m), non-food prices were up 5.6% y/y (-1.5ppts m/m), and service prices were up 2.1% (+0.2ppts m/m).
Demand for FX fell to US$ 55.5mn
In three FX auctions organized by the Central Bank over the last week, the regulator offered US$ 600mn, while demand was limited to US$ 55.5mn, which is 16.0% lower than in the previous week.
SOCAR tax payments down 0.7% y/y in January 2016
According to SOCAR statistics, it paid AZN 117.7mn (US$ 74.3mn) in taxes in January 2016, down from AZN 118.5mn (US$ 151.1mn) in January 2015, but up from AZN 75.3mn (US$ 61.1mn) in December 2015.
