Azerbaijan's Central Bank keeps interest rate unchanged amid geopolitical and inflation risks

The Board of the Central Bank of Azerbaijan has decided to keep the discount rate unchanged at 6.5%, AzerNEWS reports.

The lower limit of the interest rate corridor remains at 5.5%, while the upper limit is held at 7.5%.

The regulator said the decision was based on the alignment of actual and projected inflation with the target range of 4±2%, as well as risks stemming from rising geopolitical tensions in the region.

“The current situation in global and domestic financial markets, domestic macroeconomic trends, as well as the characteristics of the transmission of monetary policy decisions to the real sector were also taken into account,” the CBA stated.

The next decision on the parameters of the interest rate corridor will be announced on May 6, followed by a press conference.