BAKU, Azerbaijan, February 18. The impact of
the Central Bank’s key interest rate on other market interest rates
is growing over time, Trend reports via the Central Bank of Azerbaijan
(CBA).
"In July and December of 2025, the parameters of the interest
rate corridor were reduced by 0.5 percentage points, prompting a
swift reaction from the AZIR index. By December 2025, the weighted
average level of the AZIR index had fallen by 0.95 percentage
points compared to December 2024.
This decline was also reflected in the government securities
market. Yields across all segments dropped by the end of December
2025 compared to the end of December 2024. Specifically,
three-month bonds saw a decrease of 1.61 percentage points,
one-year bonds fell by 1.8 percentage points, and four-year bonds
declined by 2.84 percentage points," the report noted.
The AZIR (Azerbaijan Interbank Rate) serves as the official
benchmark interest rate for unsecured transactions in the national
currency (AZN) within the Azerbaijani interbank money market. This
rate is published daily by the Central Bank of Azerbaijan (CBA) and
has been in effect since May 1, 2023. This serves as a crucial
gauge of liquidity and the effectiveness of monetary policy,
showcasing the weighted average interest rate of short-term (1
business day) bank transactions.
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