Azerbaijan's Central Bank keeps rate at 6.5%, lowers inflation forecast
The Central Bank of Azerbaijan decided on October 29 to keep its refinancing rate at 6.5% and the interest rate corridor between 5% and 7.5%. It also lowered its inflation forecast for this year and raised the expected current account surplus.
The Central Bank's Management Board decided on October 29 to leave the refinancing rate at 6.5%, with the lower and upper bounds of the interest rate corridor unchanged at 5% and 7.5% respectively. The decision factored in overall and core inflation trends, inflation expectations, the balance of risks, currency market developments and banking sector liquidity. Annual inflation fell to 5.5% in September from 5.7% in August, while core inflation dropped to 4.9%. The bank now expects inflation to reach 5.9% by the end of both 2026 and 2027, within its target range. Foreign currency reserves grew 33.4% over nine months to reach $15.4 billion, and the current account surplus for 2026 is now projected at $8.5 billion. The next rate decision is scheduled for December 23.
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Central Bank of Azerbaijan keeps key interest rate at 6.5%
On October 29, the Central Bank of Azerbaijan announced it would leave its benchmark interest rate unchanged at 6.5%, with the rate corridor's upper limit at 7.5% and lower limit at 5%.