FX.co ★ Azerbaijan Cuts Key Rate to 6.75%

The Central Bank of the Republic of Azerbaijan made the strategic decision in its December 2025 meeting to lower the refinancing rate by 0.25 percentage points, bringing it to 6.75%. This move is part of a gradual easing policy aimed at bolstering domestic economic conditions. Concurrently, the interest rate corridor was adjusted, now ranging from a lower limit of 5.75% to an upper threshold of 7.75%. This adjustment is designed to maintain proper liquidity levels while ensuring inflation remains in check. The central bank's decision is based on their analysis that price pressures are well-managed due, in part, to stable demand and favorable global commodity market trends. Officials highlighted that while inflation risks appear balanced, external market fluctuations and domestic economic activity are the primary areas of concern. Looking ahead, the Bank reiterated its commitment to a data-driven approach, emphasizing its preparedness to alter policies should new economic data significantly depart from current inflation projections.