OREANDA-NEWS. August 12, 2014. The country economy continued to dynamically grow, national income and welfare kept rising in Half I, 2014. Azerbaijan is globally in a leading position in terms of financial sustainability and macroeconomic stability indicators.

In Half I, 2014 economic growth was 2.1%, including 7% rise in the non-oil economy. Economic growth was driven by internal growth sources. Employment and inflation were optimally balanced amid existing growth dynamics. Over the period y.o.y. drop in average annual inflation was 0.4 p.p. to 1.6%.

Given low inflation, aggregate demand factors likely to impact economic growth and growth rates of money supply, as well as in order to ensure critical support for the diversification of the economy, further rise in investments to the real sector, including the lending activity and economic growth, the CBA Management Board decided to reduce the refinancing rate to 3.5% from 4.25% from 30 July 2014. Also parameters of the interest rate corridor underwent changes. The corridor ceiling is shifted to 5% from 6%, while the floor to 0.1% from 0.5%. Reserve requirements on all bank deposits are shifted to 2% from 3%.