BAKU, Azerbaijan, June 23. The Central Bank of
Azerbaijan (CBA) will announce the next decision on the parameters
of the interest rate corridor (refinancing rate) on June 24,
2026.


This was noted in the report by the CBA.


According to the report, the next decision on the parameters of
the interest rate corridor will be made based on the change in the
inflation forecast, as well as the results of macroeconomic
analyses. It was emphasized that adequate policy measures will be
implemented if there is a risk of the inflation forecast deviating
from the target.


On May 26 of this year, by the decision of the CBI Management
Board, the discount rate was maintained at 6.5%. The lower limit of
the interest rate corridor was set at 5.5%, and the upper limit was
set at 7.5%.


In this context, the International Monetary Fund (IMF) also
believes that although current inflation forecasts justify
maintaining current interest rates, the CBI should be ready to
increase the discount rate if inflationary pressures intensify as a
result of the increase in the price of imported food products.


The IMF report pointed out that in the event of unexpected risks
related to inflation, the CBI should react decisively, while at the
same time further improving the transmission mechanism of monetary
policy and communication policy.


The fund emphasized that maintaining fiscal discipline and
maintaining the competitiveness of the economy under a de facto
fixed exchange rate regime are key conditions for macroeconomic
stability. At the same time, more active application of
macroprudential tools, full implementation of Basel III standards,
strengthening risk-based supervision, and developing financial
security mechanisms can further strengthen the stability of the
banking sector.


According to IMF forecasts, inflation in Azerbaijan will be 6%
in 2026, decrease to 4.2% in 2027, and stabilize around 4% in
subsequent years.







At the same time, the CBA also assesses the development of the
capital market as one of the important directions of the monetary
and financial system.


In response to inquiry by Trend, the CBA said that systematic
work continues on increasing the depth of Azerbaijan's capital
market through the introduction of new financial instruments and
digital solutions in line with the Financial Sector Development
Strategy for the period covering 2024-2026.


"The development observed in the securities market in recent
years has yielded significant results in terms of increasing market
depth, diversifying financial instruments, and expanding the
investor base. In 2025, the volume of the primary market for
corporate securities amounted to approximately 801 million manat
($471.1 million), while the secondary market volume reached 283
million manat ($166.4 million). These figures demonstrate a
significant increase in transparency, liquidity, and investor
activity in the capital markets in recent years," the CBA told
Trend.


The CBA also recalled that the European Bank for Reconstruction
and Development's floating-rate bond issuance in the local market
based on the AZIR index in the national currency is one of the
important indicators of the development of the Azerbaijani capital
market in line with international standards.


In response to Trend's inquiry, it was noted that key priorities
for the immediate future include enhancing the involvement of both
institutional and individual investors, boosting financial literacy
efforts, and advancing digital solutions along with electronic
trading opportunities.


“Automation of processes and reduction of transaction costs will
not only expand investors’ access to the market but also create
conditions for increasing the depth and sustainability of the
capital market. The measures implemented in this direction are
considered by the Central Bank as part of a long-term and
systematic development strategy,” the CBA told Trend.