Azerbaijan Interest Rate

The Central Bank of the Republic of Azerbaijan lowered its refinancing rate by 0.25 percentage points to 6.75% at its December 2025 meeting, continuing its gradual easing cycle to support domestic economic conditions. The decision also adjusted the interest rate corridor accordingly, setting the lower limit at 5.75% and the upper at 7.75%, signaling policymakers’ intent to maintain adequate liquidity while balancing inflation dynamics. The move reflects the central bank’s view that price pressures remain contained, supported by stable demand trends and favorable developments in global commodity markets. Officials noted that inflation risks are broadly balanced, with external volatility and domestic activity remaining the main variables to watch. Going forward, the Bank reaffirmed its data-dependent stance, emphasizing readiness to modify policy if new economic indicators diverge from its baseline inflation projections.