The Central Bank of Azerbaijan lowered its benchmark interest rate by 25 bps to 8.5 percent on June 7th 2019, its fourth cut this year, citing the stabilization of oil prices in recent months, low inflation, and the stable macroeconomic situation. Also, the lower limit of the interest rate corridor was reduced to 6.5% from 6.75% and the upper threshold to 10.5% from 10.75%. Interest Rate in Azerbaijan averaged 6.82 percent from 2005 until 2019, reaching an all time high of 15 percent in September of 2016 and a record low of 2 percent in December of 2009.
Interest Rate in Azerbaijan is expected to be 7.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Azerbaijan to stand at 7.00 in 12 months time. In the long-term, the Azerbaijan Interest Rate is projected to trend around 9.00 percent in 2020, according to our econometric models.