Baku: The Central Bank of Azerbaijan (CBA) is poised to announce its third decision of the year regarding the interest rate this week. Since May of last year, the CBA’s Board of Directors has kept the interest rate unchanged at 7.25%, maintaining the lower bound of the interest rate corridor at 6.25% and the upper bound at 8.25%.

According to Azeri-Press News Agency, the CBA’s future decisions on the parameters of the interest rate corridor will depend on the dynamics of actual and projected inflation, as well as external and internal risk factors. The bank has emphasized its commitment to using all available tools to ensure price stability. Should actual and projected inflation decrease, there may be a review of the possibility of reducing the parameters of the interest rate corridor. Conversely, the Central Bank is prepared to respond appropriately if inflation risks become evident.

Inflation in Azerbaijan has been on the rise since the beginning of the year. The State Statistics Committee recently report
ed that annual inflation in March was 5.9%. This figure falls within the CBA’s target range of 4±2%, suggesting that the bank may opt to keep the interest rate stable in its upcoming decision, rather than making changes hastily.