12:21 - 10.09.2025

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September 10, Fineko/abc.az. The Central Bank of Azerbaijan (CBA) announced its decision regarding the key policy rate.

ABC.AZ reports, citing the bank, that the Board of the Central Bank decided to keep the key interest rate unchanged at 7.00%. The parameters of the interest rate corridor also remain unchanged, with a lower bound of 6.00% and an upper bound of 8.00%.

“This decision was made considering the alignment of actual inflation with the projected inflation trajectory, the comparison of forecasted inflation with the target rate (4±2%), potential effects of recent global economic developments, the domestic macroeconomic situation, and the transmission of monetary policy decisions,” the CBA stated.

The CBA emphasized that annual inflation is currently moving close to the projected trajectory. In July 2025, 12-month inflation stood at 5%. Annual price growth was 6.2% for food, alcoholic beverages, and tobacco products; 5.6% for paid services; and 2.1% for non-food goods. Annual core inflation reached 4.6%.

Uncertainty in the international environment persists, but its impact on domestic inflation in recent months has been limited. According to the International Monetary Fund (IMF), the commodity price index declined by 0.7% year-on-year in July 2025, including a 3.3% drop in food prices. In July, the IMF revised its global inflation forecast for 2025 downward while leaving the 2026 forecast unchanged.