BAKU, Azerbaijan, July 23. Deposit auctions conducted by the Azerbaijani Ministry of Finance to place the free balances of the unified treasury account have continued to have a rising positive effect on the liquidity position of the banking sector since April 2025, Trend reports via the Central Bank of Azerbaijan (CBA).
Under these conditions, the CBA aimed to sterilize a significant portion of excess liquidity through one-week operations, bringing the AZIR (Azerbaijan Interbank Rate) closer to the policy rate. Activity in the money market remains high. In the first six months of 2025, compared to the same period last year, the volume of transactions in the unsecured market increased by 26 percent, and the number of transactions rose by 55 percent.
To note, by decision of the CBA Board, all parameters of the interest rate corridor were lowered by 0.25 percentage points. The policy rate was reduced to seven percent, the lower bound of the corridor to six percent, and the upper bound to eight percent.
The decision was made considering the alignment of actual inflation with the forecast inflation trajectory and its comparison to the target range (4±2 percent), recent global economic developments, the domestic macroeconomic situation, ongoing stability in the currency market, as well as the transmission of monetary policy decisions.
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