Azerbaijan Interest Rate

The Central Bank of Azerbaijan maintained its key refinancing rate at 7.25% for the tenth consecutive meeting in April 2025, holding borrowing costs at their lowest level since December 2021. The interest rate corridor was also left unchanged, with the upper limit at 8.25% and the lower limit at 6.25%. The decision came amid stable inflation, which continued to remain within the central bank's target range of 4±2%. As of March 2025, annual inflation stood at 5.9% as forecast, with prices rising 6.5% for food, 2.8% for non-food items, and 7.5% for services. Annual core inflation was 4.5%. Meanwhile, external sector conditions remain favorable, with a positive trade balance in Q1 2025 and the current account projected to post a surplus by year-end. The central bank reaffirmed its commitment to price stability and stated that future rate decisions will depend on incoming data and evolving inflationary risks.