BAKU, Azerbaijan, December 18. The Central Bank of Azerbaijan (CBA) decided to keep the refinancing rate unchanged at the level of 7.25 percent, Trend reports.
According to the CBA, the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.
The decision to keep the interest rate unchanged was made based on actual and projected inflation within the target range (4±2%) and an analysis of macroeconomic trends.
"As of the last meeting, annual inflation remained within the target range. In November 2024, the average annual inflation rate was 4.4 percent. The annual price increase for food items was 4.4 percent, for non-food goods was 2.2 percent, and for services was 6 percent. The low inflation in the food and non-food sectors was a key factor in maintaining the target inflation level," the CBA said.
The CBA also noted that external inflationary conditions remain stable.
"The global commodity price index increased by only 0.7 percent (according to IMF data) compared to the same period last year.
Additionally, the appreciation of the manat's nominal effective exchange rate (by 7.1 percent in the first 11 months of 2024) contributed to a reduction in import inflation. Future decisions regarding the interest rate corridor will be based on actual and projected inflation, as well as the dynamics of internal and external risk factors. The Central Bank continues to analyze economic processes and monitor financial markets. Focusing on its primary mandate, the CBA is committed to using all available tools to ensure price stability," the statement noted.
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