Azerbaijan Interest Rate

The Central Bank of Azerbaijan kept its refinancing rate unchanged at 7.25% during its May 2025 meeting, marking the eleventh consecutive decision to maintain rates at their lowest level since December 2021. The interest rate corridor also remained steady, with the upper bound at 8.25% and the lower bound at 6.25%. The decision reflects the bank’s ongoing commitment to price stability, amid inflation continuing to track within the 4±2% target range. As of April 2025, annual inflation stood at 5.6%, slightly down from 5.9% in March. Food prices rose by 6.1%, non-food items by 2.2%, and services by 7.6%, while core inflation was recorded at 4.3%. External conditions remained supportive, with a continued current account surplus and favorable commodity market dynamics. The central bank stated it would remain vigilant and make further policy adjustments based on evolving inflation risks and global macroeconomic trends.