The Central Bank left the base rate unchanged
Economy
According to the bank, despite the decline in inflation and inflationary expectations, pressure on prices associated with demand factors remains. The base rate has not been changed to ensure that inflation will be within the forecast until the end of the year.
At a meeting on July 27, 2023, the Board of the Central Bank decided to leave the base rate unchanged at 14 percent per annum. This was reported by the press service of the bank.
“Given that demand-driven pressures on prices remain despite declining inflation and inflation expectations, the base rate has been left unchanged to ensure that inflation is in line with the forecast through the end of the year,” the statement said.
Headline inflation has shown a downward trend since the beginning of the year, reaching 9% per annum in June. The main constraining factors were the exhaustion of last year's high base effect, relatively stable imports and managed prices.
“Given that demand-driven pressures on prices remain despite declining inflation and inflation expectations, the base rate has been left unchanged to ensure that inflation is in line with the forecast through the end of the year,” the statement said.
Headline inflation has shown a downward trend since the beginning of the year, reaching 9% per annum in June. The main constraining factors were the exhaustion of last year's high base effect, relatively stable imports and managed prices.
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