BAKU, Azerbaijan, September 8. We expect the Central Bank of Azerbaijan (CBA) to maintain the refinancing rate at 7.00 percent at the 10 September meeting, the Dutch banking group ING stated, Trend reports
In the interval since our previous convening, the Consumer Price
Index (CPI) expansion decelerated to 4.9 percent year-over-year in
July, congruent with the established 4±2 percent year-end
benchmark. Furthermore, we do not preclude the potential for
additional reductions to be deliberated, considering the anemic GDP
expansion of 0.9 percent year-over-year as of July 2025, which
encompasses a contraction of -2.3 percent year-over-year in July,
alongside the deceleration in Producer Price Index growth.
“Nevertheless, the contraction in the trade surplus coupled with
the persistent outperformance of bank lending relative to funding
necessitates the sustenance of elevated real interest rates.” The
CBA commentary is anticipated to concentrate on foreign exchange
market dynamics and liquidity flows. ING acknowledged.
Previously, the CBA governing body recalibrated all metrics of the
interest rate corridor by a decrement of 0.25 basis points. The
recalibration of the refinancing rate has been established at 7
percent, with the delineated thresholds of the corridor positioned
at 6 percent and 8 percent, respectively.
The resolution also considered prevailing inflationary dynamics
juxtaposed with the projected trajectory and designated target
bandwidth, recent international economic fluctuations, internal
macroeconomic landscapes, sustained currency market equilibrium,
and the propagation mechanism of monetary policy
determinations.
ING Group, or Internationale Nederlanden Groep, operates as a prominent player in the global banking and financial services sector, with its central hub strategically located in Amsterdam, Netherlands. It provides an extensive portfolio of financial services, encompassing retail banking, commercial banking, investment banking, and insurance solutions, catering to a diverse clientele that includes individuals, enterprises, and governmental entities across over 40 jurisdictions.
