BAKU, Azerbaijan, November 3. The Central Bank of Azerbaijan (CBA) decided this week to keep the refinancing rate unchanged at 7.25 percent.
The upper and lower limits of the interest rate corridor also remained the same at 8.25 percent and 6.25 percent, respectively.
Analysts from Dutch ING forecasted that the CBA will maintain the refinancing rate at 7.25 percent until the end of 2025.
Additionally, it was reported that according to updated forecasts from the CBA, the current account balance surplus is expected to reach $5.3 billion by the end of 2024 and $5.5 billion in 2025. The CBA anticipated annual inflation to be 5.1 percent by the end of 2024 and 5.8 percent in 2025.
This week, the CBA announced its plans to present a unified taxonomy principle at the 29th session of the UN Framework Convention on Climate Change (COP29).
Furthermore, it was noted that the CBA and bp discussed the development of a green economy in the country.
Besides, this week, it was reported that the International Bank of Azerbaijan has been selected as the main partner bank for COP29.
Azerbaijan and Hungary also discussed cooperation opportunities between their financial sectors this week.
It became known that the Asian Development Bank (ADB) plans to finance the construction of a 445 MW solar power plant in the Bilasuvar district of Azerbaijan and a 315 MW solar photovoltaic power plant, Banka Solar, in the Neftchala district.
According to ADB, a loan of $50 million is proposed for the solar power plant in Bilasuvar and $35 million for the photovoltaic power plant in Neftchala.
This week, the International Monetary Fund (IMF) released a forecast for the nominal GDP growth of Azerbaijan. According to the forecast, Azerbaijan's nominal GDP is expected to increase from $72.4 billion in 2023 to $75.6 billion in 2024 and $77 billion in 2025.
The real GDP growth of Azerbaijan was projected to be 3.2 percent in 2024, up from 1.1 percent in 2023, with a slowdown expected to 2.5 percent in 2025.