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Azerbaijan Central Bank Cuts Refinancing Rate by 25bps to 6.50% as Inflation in Target Range

BY MT Newswires | ECONOMIC | 11:35 AM EST

11:35 AM EST, 02/04/2026 (MT Newswires) -- Azerbaijan's central bank (CBAR) on Wednesday said its Management Board decided to lower all parameters of the interest rate corridor by 25bps, with the key refinancing rate lowered to 6.5%.

The rate reduction takes effect on Thursday.

The decision has been made considering the alignment of actual inflation with the forecasted target range, wrote the central bank in its policy statement.

Inflation has been falling over the past two months, CBAR pointed out. In December, the 12-month inflation stood at 5.2%.

Annual inflation is forecast to remain within the target band by the end of this year and in 2027, added the central bank. According to February 2026 forecasts, under the baseline scenario, annual inflation is expected to stand at 5.5% this year and 4.0% in 2027.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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