The Board of the Central Bank of Azerbaijan (CBA) has decided to keep the discount rate unchanged at 6.5 percent.
Operative Information Center-OMM reports, citing the CBA, that the parameters of the interest rate corridor have also been maintained, with the lower limit set at 5.5 percent and the upper limit at 7.5 percent.
"The decision regarding the interest rate corridor was based on actual and forecasted inflation remaining within the target range, risks arising from global geopolitical tensions, the global financial environment, and the domestic macroeconomic climate, as well as the transmission of monetary policy decisions to the real sector," the CBA stated in an official release.
The regulator noted that the next decision regarding the interest rate corridor parameters will be announced to the public on June 24. Future adjustments will depend on changes in inflation forecasts and the results of ongoing macroeconomic analysis. The CBA emphasized that adequate policy measures will be implemented should any risks arise that could cause inflation to deviate from its target.
The Central Bank of Azerbaijan plays a pivotal role in maintaining price stability and fostering the development of the national financial system. By managing the discount rate, the regulator aims to balance economic growth with inflationary pressures. In recent years, Azerbaijan has focused on diversifying its economy and strengthening the manat's stability against the backdrop of fluctuating global energy prices and regional geopolitical shifts.
