The Management Board of the Central Bank of the Republic of Azerbaijan left the refinancing rate at 6.50% and maintained the 5.50%–7.50% interest-rate corridor on 6 May 2026, judging that both headline inflation (5.6% y/y in March) and core inflation (5.5%) remain within the 4 ± 2 pp target band while external cost pressures and geopolitical tensions pose upside risks. After three 25 bp cuts since July 2025, the policy rate now stands 75 bp lower. Short-term interbank rates continue to trade near the policy rate—April’s average AZIR was 6.44%—as the central bank actively manages liquidity. FX supply has exceeded demand so far in 2026; resident deposit dollarisation fell to 28% and foreign-exchange reserves rose 10.2% to USD 12.7 bn, supported by a Q1 trade surplus of USD 1.4 bn. Higher global food prices, partner-country inflation and war-related disruptions to energy and shipping routes dominate the external risk set. The central bank said future corridor decisions will hinge on updated inflation and macroeconomic assessments and it is prepared to tighten policy if price growth risks breach the target; the next announcement is scheduled for 24 June 2026.
Central Bank of Azerbaijan 2026-05-06
Central Bank of the Republic of Azerbaijan holds refinancing rate at 6.50% and maintains 5.50–7.50% corridor (6 May 2026)
Central Bank of the Republic of Azerbaijan kept the refinancing rate at 6.50% and the 5.50%–7.50% corridor on 6 May 2026, noting March headline/core inflation of 5.6%/5.5% sit within its 4 ± 2 pp band but external cost and geopolitical pressures pose upside risks. After cumulative 75 bp easing since July 2025, the bank said future moves will depend on updated inflation and macro data and it is ready to tighten before the 24 June decision if needed.