The Central Bank of the Republic of Azerbaijan left its discount rate unchanged at 6.5% for a fourth consecutive meeting on September 23, 2026, keeping borrowing costs at their lowest level since September 2021. It cut the lower bound of its interest rate corridor by 0.5 percentage points to 5%, while leaving the upper bound at 7.5%. The wider corridor is intended to encourage interbank trading amid excess liquidity, while the unchanged key rate and upper bound are aimed at stabilizing inflation expectations. Annual inflation eased to 5.7% in August from 5.8% in July and remained within the target range; core inflation was 5.1%. Foreign currency supply continued to exceed demand, helping international reserves rise 32.9% to a record $15.3 billion during the first eight months of 2026. The bank identified global energy and food prices as key upside risks to inflation and said future decisions would depend on inflation, foreign exchange market conditions and banking liquidity.