Central Bank to reduce discount rate to 6.5% this year - Forecast

16:21 - 3.07.2024

July 3, Fineko/abc.az. The International Corporation of Banking & Financial Services of the Netherlands ING (Internationale Nederlanden Groep) predicts a reduction in the discount rate in Azerbaijan in 2024-2025.

ABC.AZ reports that ING lowered the forecast for the CBA discount rate for 2024 from 7.0% to 6.5%.

In the previous forecast, the corporation predicted a reduction in CBA discount rate from 7.25% to 6.00% in 2025. In the new forecast, ING analysts have determined that the discount rate in 2025 will remain at 6.5%.

In addition, ING believes that in 2026, the Central Bank again raised the discount rate by 1 percentage point to 7.5%.

The last time by the decision of the CBA Board of Directors on June 21 of this year, the rate remained at 7.25%, the lower limit of the interest rate corridor was 6.25%, and the upper limit of the interest rate corridor was 8.25.