FX.co ★ Azerbaijan Holds Key Rate at 6.5%

The Central Bank of the Republic of Azerbaijan left its key discount rate unchanged at 6.5% in April 2026, extending the pause in its monetary easing cycle as inflation remains within the 4±2% target band. The parameters of the interest rate corridor were also kept steady, with the lower bound at 5.5% and the upper bound at 7.5%, underscoring a measured approach to liquidity management.

The decision reflects a continued easing of price pressures. In February, annual headline inflation stood at 5.7%, while core inflation registered 5.6%, with both indicators shaped largely by external factors. The broader macroeconomic backdrop remains stable, underpinned by robust growth in the non-oil sector and a strong external position.

Azerbaijan continues to benefit from a substantial trade surplus and rising foreign exchange reserves, which help support currency stability. At the same time, policymakers highlighted persistent global risks that could spill over into domestic inflation dynamics.

The central bank reaffirmed its data-dependent approach, emphasizing that it stands ready to adjust its policy stance should inflation diverge meaningfully from its baseline forecast.