Central Bank of Azerbaijan Holds Key Rate Steady âšī¸
The Central Bank of Azerbaijan kept its key financing rate at 7.25% in December 2024, maintaining borrowing costs at their lowest level since December 2021 after five straight rate cuts, as actual and projected inflation aligned with the target range of 4Âą2%.
The decision by the Central Bank of Azerbaijan to maintain its key financing rate at 7.25% is a neutral event for the given investment portfolio. While it indicates a stable monetary policy environment in Azerbaijan, the portfolio's exposure to the Azerbaijani market is relatively low (1% each for the UAE and Kuwait markets), and the overall impact on the broader portfolio is expected to be minimal.