Azerbaijan's Central Bank unexpectedly cuts discount rate to 6.5%

BAKU. Feb 4 (Interfax) - The Central Bank of Azerbaijan (CBA) decided at a meeting on Wednesday to cut its discount rate to 6.5% from 6.75% effective February 5.

The low and high ends of the interest rate corridor will be lowered to 5.5% from 5.75% and 7.5% from 7.75%, respectively, the CBA said in a press release.

The CBA said this decision was made in light of forecasts for inflation, which is holding within the set corridor of 4% plus/minus 2 percentage points. The CBA said it also took into account global economic activity and the current situation on international financial markets, the main trends in the domestic macroeconomic environment, and the transmission of monetary policy decisions to financial markets and the real sector of the economy.

Analysts at ING Group had expected the CBR to leave the rate unchanged.

The CBA held eight meetings on the discount rate in 2025, leaving the rate unchanged at six of them and lowering it by 25 basis points at two, including to 6.75% from 7% in December.