The Central Bank of the Republic of Azerbaijan kept its discount rate unchanged at 6.5% in April 2026, sustaining a pause in its easing cycle as inflation remains within the 4±2% target range. The interest rate corridor was also left intact, with the lower bound at 5.5% and the upper bound at 7.5%, signaling a balanced approach to liquidity management. The decision reflects easing price pressures, with annual inflation at 5.7% and core inflation at 5.6% in February, largely driven by external factors. The broader macroeconomic environment remains stable, supported by solid non-oil sector growth and a strong external position. The country continues to benefit from a sizable trade surplus and rising foreign exchange reserves, helping anchor currency stability. However, policymakers flagged lingering global risks, which could feed into inflation. The central bank reiterated its data-dependent stance, emphasizing readiness to adjust policy if inflation deviates from its baseline outlook.