Azerbaijan's Central Bank hikes refinancing rate by 25 bps to 8.5% pa

BAKU. Feb 1 (Interfax) - The Central Bank of Azerbaijan has hiked the refinancing rate, or discount rate, by 25 basis points to 8.5% per annum, the regulator said in a statement.

According to the Central Bank's statement, the lower threshold of the interest rate band (the floor) has increased from 6.25% pa to 6.75% pa, and the upper threshold of the interest rate band (the cap) has risen from 9.25% pa to 9.5% pa.

The decision comes into force on February 1.

The Central Bank hiked the rate four times last year. The 8.25% rate had been in effect since December 16, 2022, when the regulator hiked it from 8%.