2026.06.2407:11:53UTC+00Azerbaijan Holds Rates for 3rd Meeting

The Central Bank of the Republic of Azerbaijan left its discount rate unchanged at 6.5% at its June 2026 meeting, marking the third consecutive decision to hold and keeping borrowing costs at their lowest level since September 2021. The parameters of the interest rate corridor were also maintained, with the lower bound at 5.5% and the upper bound at 7.5%, as policymakers assessed inflation risks to be broadly balanced.

Annual inflation registered 5.6% in May, while non-food inflation remained relatively subdued. The central bank highlighted favorable conditions in the foreign exchange market, a continued decline in dollarization, and robust foreign currency inflows. External conditions were described as supportive, underpinned by higher energy prices and an improved trade balance.

At the same time, policymakers cautioned that global inflationary pressures — including rising costs for food, fertilizers, and transportation — could spill over into domestic prices. The bank reaffirmed that future monetary policy decisions will be guided by the trajectory of inflation, developments in the external environment, and overall macroeconomic conditions.