The Board of the Central Bank of Azerbaijan (CBA) has decided to maintain the discount rate at 6.5%.
Operative Information Center-OMM reports this with reference to the CBA.
According to the official statement, the lower limit of the interest rate corridor was kept at 5.5%, while the upper limit remained at 7.5%.
"The decision was based on the alignment of actual and forecasted inflation with the target interval (4±2%), risks arising from increasing geopolitical tensions in the nearby region, and the current situation in global financial markets. Internal macroeconomic trends, as well as the characteristics of the transmission of monetary policy decisions to the real sector, were also taken into account," the CBA stated.
The regulator further noted that future decisions on the parameters of the interest rate corridor will be made based on the direction of forecasted and actual inflation, as well as updated results of macroeconomic analysis. The CBA emphasized that it will continue to use all available tools to ensure price stability in Azerbaijan. Adequate policy steps will be taken should any risks arise that could cause inflation to deviate from the target.
The next decision regarding the parameters of the interest rate corridor will be announced to the public on May 6, followed by a scheduled press conference. This monetary policy stance reflects the central bank's commitment to maintaining macroeconomic stability in Azerbaijan amidst a complex global economic environment. The discount rate is a key tool used by the central bank to manage liquidity in the banking system and influence inflation rates within the national economy.
