BAKU, Azerbaijan, February 18. The impact of the Central Bank’s key interest rate on other market interest rates is growing over time, Trend reports via the Central Bank of Azerbaijan (CBA).
"In July and December of 2025, the parameters of the interest rate corridor were reduced by 0.5 percentage points, prompting a swift reaction from the AZIR index. By December 2025, the weighted average level of the AZIR index had fallen by 0.95 percentage points compared to December 2024.
This decline was also reflected in the government securities market. Yields across all segments dropped by the end of December 2025 compared to the end of December 2024. Specifically, three-month bonds saw a decrease of 1.61 percentage points, one-year bonds fell by 1.8 percentage points, and four-year bonds declined by 2.84 percentage points," the report noted.
The AZIR (Azerbaijan Interbank Rate) serves as the official benchmark interest rate for unsecured transactions in the national currency (AZN) within the Azerbaijani interbank money market. This rate is published daily by the Central Bank of Azerbaijan (CBA) and has been in effect since May 1, 2023. This serves as a crucial gauge of liquidity and the effectiveness of monetary policy, showcasing the weighted average interest rate of short-term (1 business day) bank transactions.
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