Azerbaijan Economics - Second Key Rate Cut This Year
The Central Bank of Azerbaijan (CBA) has again opted to ease monetary policy, cutting the key policy rate by 25 bps to 9.00% on Friday. This was the second cut this year and the sixth since the beginning of last year. As inflation is running below the 4% target and close to the lower boundary of the inflation corridor (2-6%), we see potential for further rate cuts this year, although a recent pickup in domestic demand is set to drive inflation higher.
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