FX.co ★ Azerbaijan Holds Key Rate at 7%

In its September 2025 meeting, the Central Bank of Azerbaijan decided to maintain the refinancing rate at 7%, keeping borrowing costs at their lowest since late 2021. The interest rate corridor also remains unchanged, with the upper bound at 8% and the lower bound at 6%. Policymakers emphasized that this decision is informed by stable inflation rates, balanced external economic conditions, and a commitment to preserving financial stability while promoting economic activity. August saw a slight easing of annual inflation to 6.5% from July's 6.7%, staying within the target range of 4±2%. Core inflation maintained proximity to its midpoint. The bank highlighted that inflation risks are largely balanced, with global commodity trends and domestic demand posing the primary uncertainties. Looking forward, the bank reiterated its commitment to a data-driven policy approach and expressed readiness to adjust rates should inflationary risks deviate from expected trends.