BAKU, Azerbaijan, June 23. The Central Bank of Azerbaijan (CBA) will announce the next decision on the parameters of the interest rate corridor (refinancing rate) on June 24, 2026.
This was noted in the report by the CBA.
According to the report, the next decision on the parameters of the interest rate corridor will be made based on the change in the inflation forecast, as well as the results of macroeconomic analyses. It was emphasized that adequate policy measures will be implemented if there is a risk of the inflation forecast deviating from the target.
On May 26 of this year, by the decision of the CBI Management Board, the discount rate was maintained at 6.5%. The lower limit of the interest rate corridor was set at 5.5%, and the upper limit was set at 7.5%.
In this context, the International Monetary Fund (IMF) also believes that although current inflation forecasts justify maintaining current interest rates, the CBI should be ready to increase the discount rate if inflationary pressures intensify as a result of the increase in the price of imported food products.
The IMF report pointed out that in the event of unexpected risks related to inflation, the CBI should react decisively, while at the same time further improving the transmission mechanism of monetary policy and communication policy.
The fund emphasized that maintaining fiscal discipline and maintaining the competitiveness of the economy under a de facto fixed exchange rate regime are key conditions for macroeconomic stability. At the same time, more active application of macroprudential tools, full implementation of Basel III standards, strengthening risk-based supervision, and developing financial security mechanisms can further strengthen the stability of the banking sector.
According to IMF forecasts, inflation in Azerbaijan will be 6% in 2026, decrease to 4.2% in 2027, and stabilize around 4% in subsequent years.
At the same time, the CBA also assesses the development of the capital market as one of the important directions of the monetary and financial system.
In response to inquiry by Trend, the CBA said that systematic work continues on increasing the depth of Azerbaijan's capital market through the introduction of new financial instruments and digital solutions in line with the Financial Sector Development Strategy for the period covering 2024-2026.
"The development observed in the securities market in recent years has yielded significant results in terms of increasing market depth, diversifying financial instruments, and expanding the investor base. In 2025, the volume of the primary market for corporate securities amounted to approximately 801 million manat ($471.1 million), while the secondary market volume reached 283 million manat ($166.4 million). These figures demonstrate a significant increase in transparency, liquidity, and investor activity in the capital markets in recent years," the CBA told Trend.
The CBA also recalled that the European Bank for Reconstruction and Development's floating-rate bond issuance in the local market based on the AZIR index in the national currency is one of the important indicators of the development of the Azerbaijani capital market in line with international standards.
In response to Trend's inquiry, it was noted that key priorities for the immediate future include enhancing the involvement of both institutional and individual investors, boosting financial literacy efforts, and advancing digital solutions along with electronic trading opportunities.
“Automation of processes and reduction of transaction costs will not only expand investors’ access to the market but also create conditions for increasing the depth and sustainability of the capital market. The measures implemented in this direction are considered by the Central Bank as part of a long-term and systematic development strategy,” the CBA told Trend.
