The average annual inflation will decline to 5% in Azerbaijan in 2017 due to limited liquidity on the market, the World Bank (WB) said in its updated “Azerbaijan Partnership Program Snapshot” report. The report added, “Azerbaijan’s economy is likely to experience another year of negative growth in 2017 despite the anticipated recovery of oil prices, as oil production is not expected to increase and the non-oil sector continues to be affected by the government’s spending cuts and the banking sector distress. Non-oil sector growth will also remain weak”.
Azerbaijan’s central bank could revise interest rates next year if needed to preserve macroeconomic stability, the bank’s governor, Elman Rustamov, said on Tuesday. “In 2017, in connection with the need to achieve our objective of macroeconomic stability and banking sector liquidity, the central bank of Azerbaijan will increase the scale of operations to sterilise the money supply, (and) if necessary, interest rates will be revised,” he said.