The Central Bank of Azerbaijan kept its refinancing rate unchanged at 7% during its September 2025 meeting, maintaining borrowing costs at their lowest level since late 2021. The interest rate corridor was also left steady, with the upper bound at 8% and the lower bound at 6%. Policymakers said the decision reflects stable inflation dynamics, balanced external conditions, and the need to preserve financial stability while supporting economic activity. Annual inflation eased to 6.5% in August from 6.7% in July, remaining within the 4±2% target band, while core inflation stayed close to the midpoint. The bank noted that risks to inflation are broadly balanced, with global commodity trends and domestic demand being the main uncertainties. Looking ahead, it reaffirmed its data-driven approach to policy, emphasizing readiness to adjust rates if inflationary risks deviate from the forecast path.