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Azerbaijan's Central Bank to make its next decision on interest rate this week

10 March 2025 10:35 (UTC +04:00)

The Board of the Central Bank of Azerbaijan (CBA) will make a decision regarding the interest rate once again this week, APA reports.

The CBA will announce its second decision of the year regarding the interest rate on March 12.

Since May of last year, the CBA’s Board has kept the interest rate unchanged. Currently, the interest rate stands at 7.25%, the lower bound of the interest corridor at 6.25%, and the upper bound at 8.25%.

The Central Bank stated that further decisions on maintaining or increasing the interest rate will depend on actual and forecasted inflation, as well as the dynamics of external and internal risk factors: "In accordance with its mandate established by law, the Central Bank will use all available tools to ensure price stability. If inflationary pressures decrease and inflation expectations remain stable, the possibility of reducing the parameters of the interest corridor may be considered. At the same time, the Central Bank will respond appropriately in the event of the realization of potential risks related to achieving the inflation target."

It should be noted that forecasts regarding the CBA’s decision on the interest rate vary. The international economic statistics portal Trading Economics (TE) predicts that the CBA will keep the interest rate unchanged in its decisions for the first quarter of this year. However, the Dutch financial corporation ING Group forecasts that the Central Bank will raise the interest rate from 7.25% to 7.50%.