The Central Bank of Azerbaijan (CBA) will make a decision regarding the discount rate for the first time in 2026, specifically on February 4.
Modern.az reports this, citing the CBA. Previously, in its decision on December 10, the Central Bank reduced the discount rate and other parameters of the interest rate corridor by 0.25 percentage points. The discount rate was lowered to 6.75%, the lower bound of the interest rate corridor to 5.75%, and the upper bound of the interest rate corridor to 7.75%.
The CBA noted that the next decision regarding the parameters of the interest rate corridor will be made based on the direction of forecast and actual inflation, as well as the updated results of macroeconomic analyses.
It should be recalled that the largest financial group in the Netherlands, "ING Group", in its report on Azerbaijan published last week, predicted that the CBA would keep the discount rate unchanged in its next decision: "No changes in monetary policy are expected in the near term, and there is a high probability that the Central Bank of Azerbaijan will keep the discount rate unchanged at 6.75% at its meeting on February 4. An interest rate cut is considered possible only against the backdrop of sustained disinflation and strengthening fiscal discipline".
