Central Bank of Azerbaijan Maintains Policy Rate

The Board of the Central Bank of Azerbaijan (CBA) has decided to maintain the policy rate at 6.5%.

The editorial office reports this, citing the CBA.

According to the information, the lower bound of the interest rate corridor has been maintained at 5.5%, and the upper bound at 7.5%.

"When making the decision, the alignment of actual and projected inflation with the target interval (4±2%), risks arising from increasing geopolitical tensions in the near region, the current situation in global and domestic financial markets, domestic macroeconomic trends, as well as the specific characteristics of monetary policy decisions' transmission to the real sector were taken into account.

The next decision regarding the parameters of the interest rate corridor will be made based on the direction of projected and actual inflation, as well as the updated results of macroeconomic analyses. The CBA will continue to use all available instruments to ensure price stability. Adequate policy steps will be taken if there is a risk of inflation forecasts deviating from the target," the CBA stated.

Information regarding the next decision on the interest rate corridor parameters will be announced to the public on May 6, and a press conference will be held in connection with this.