The Central Bank of the Republic of Azerbaijan kept its discount rate unchanged at 6.5% for a third consecutive meeting in June 2026, maintaining borrowing costs at the lowest level since September 2021. The interest rate corridor was also left intact, with the lower bound at 5.5% and the upper bound at 7.5%, as policymakers judged inflation risks to be broadly balanced. Annual inflation stood at 5.6% in May, while non-food inflation stayed relatively subdued. The central bank noted favorable foreign exchange market conditions, declining dollarization, and strong foreign currency inflows. External conditions also remained supportive, helped by higher energy prices and a stronger trade balance. However, policymakers warned that global inflation risks, including higher food, fertilizer, and transportation costs, could affect domestic prices. The bank reiterated that future policy decisions will depend on inflation dynamics, external developments, and overall macroeconomic conditions.