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Central Bank’s New Decision: Interest Rate Corridor Unchanged

Central Bank’s New Decision: Interest Rate Corridor Unchanged

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Economy
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The Board of the Central Bank of Azerbaijan (CBA) has decided to keep all parameters of the interest rate corridor stable. This step was taken considering that inflation in the country remains within the target range, as well as global economic trends, the geopolitical situation, and domestic macroeconomic conditions.

According to the CBA's statement, annual inflation in May 2026 was 5.6%, which is consistent with forecasts. At the same time, it was observed that supply exceeded demand in the foreign exchange market.

In January-May of the current year, the country's foreign trade showed a positive balance of 7.2 billion US dollars. During the same period, the Central Bank's foreign exchange reserves also increased by 10.4%, reaching 12.7 billion US dollars.

Based on the Bank's forecasts, inflation is expected to remain within the target range until the end of 2026. The date of the next decision on the interest rate corridor and the press conference has been changed. The event will be held on July 31, 2026, instead of the previously planned August 5.

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