FX.co ★ Azerbaijan Keeps Key Rate Steady

The Central Bank of Azerbaijan decided to maintain its refinancing rate at 7.25% during its meeting in May 2025. This marks the eleventh consecutive time that the rate has been held steady at this level, the lowest since December 2021. Additionally, the interest rate corridor was kept unchanged, with an upper limit of 8.25% and a lower limit of 6.25%. This decision underscores the bank's ongoing dedication to maintaining price stability, as inflation continues to remain within the target range of 4±2%. As of April 2025, annual inflation was reported at 5.6%, a slight decrease from 5.9% in March. Specifically, food prices increased by 6.1%, non-food items by 2.2%, and services by 7.6%, while core inflation registered at 4.3%. External conditions continued to provide support, with a sustained current account surplus and positive dynamics in the commodity markets. The central bank emphasized its vigilance and commitment to making further policy adjustments as necessary, taking into account evolving inflation risks and global macroeconomic trends.