Azerbaijan Interest Rate

The Central Bank of the Republic of Azerbaijan kept its refinancing rate unchanged at 7% during its October 2025 meeting, maintaining borrowing costs at their lowest level since late 2021. The interest rate corridor was also left steady, with the upper bound at 8% and the lower bound at 6%. Policymakers said the decision reflects stable inflation trends, balanced external and internal conditions, and the need to preserve financial stability while supporting economic activity. Inflation remains within the 4±2% target range, supported by stable food prices and moderate domestic demand. The Bank noted that risks to inflation are broadly balanced, citing movements in global commodity markets and domestic demand as key factors. Looking ahead, it reaffirmed its data-driven approach, emphasizing readiness to adjust policy if inflation deviates from its forecast path.