The BOD of the Central Bank decided to keep the interest rate unchanged at 13.5% at its meeting today with an aim to cut inflation to the projected levels by the end of the year and achieve the 5% target in the medium term, the press service of the Central Bank reported.
Reportedly, high demand in the economy and the inflation of prices for some types of food products and energy resources require keeping the current level of monetary and credit conditions.
High economic activity and steady growth in household incomes are the main factors stimulating aggregate demand.
In the past three months, according to the Central Bank, overall inflation remained unchanged at 10.5% in annual terms in August. This year, the decline in prices for fruit and vegetable products had a downward effect of about 1 percentage point on inflation. At the same time, core inflation, which had a downward trend since the beginning of the year, stopped slowing down in annual terms after June.
The next meeting of the Central Bank Board on the rate is scheduled for October 24.
Earlier in July, the Central Bank decided to cut the rate to 13.5% per annum amid a reduction in inflationary risks. The key rate fell below 14% for the first time in seven years.
