CBA told APA-Economics that recent macroeconomic processes, factors affecting the inflation, measures to manage these factors and realization process of the monetary policy have been discussed at the meeting.
“Rise in oil price, decline of average monthly non-oil import compared to monthly indicators of the last quarter of previous year and consequently, start of balancing tendency in the current account of the balance of payment have been noted as factors having positive impact on the macroeconomic stability in the discussions. Measures taken to ensure the macroeconomic stability, as well as fulfilment of the Action Plan approved by the Financial Stability Council also yield results. In accordance with the adopted monetary program, effective management of the money supply, close coordination of monetary and fiscal policies, complex measures to balance the currency market allowed quick regulation of inflation risks. Central Bank’s large-scale sterilization operations optimized the monetary base. Taken measures and observed positive processes created condition for switching to quicker exchange rate. The Central Bank has passed several decisions to increase the quickness of the exchange rate. Application of mechanism on the new currency auction, elimination of limit imposed on the cash and non-cash rate of foreign currency have balancing impact on the currency market. The national currency has strengthened slightly, which stipulated improvement of inflation expectations. On the background processes abovementioned, the inflation rates declined in February compared to the previous month. Depending on effectiveness of application of the adopted macroeconomic policy and positive trends in balance of payment and currency market, it’s possible to achieve one-digit inflation as at the end of the current year”, the information said.
Taking into account the initial positive trends observed in the macroeconomic sphere and new expectations, under the decision passed by the Central Bank Management Board the parameters of the interest corridor, as well as discount rate were remained unchanged.