ING predicts discount rate reduction in Azerbaijan in 2024-2025

The Dutch company ING Group predicts a reduction in the discount rate by the Central Bank of Azerbaijan (CBA) in 2024 and 2025, Report informs, citing the company's forecasts.

The CBA will reduce the discount rate to 7.5% in 2024, to 7.25% in the first quarter of 2025, and further to 6.5% by the end of the year.

According to ING Group, these figures are 0.5 percentage points lower than in the forecast published on January 11.

On January 31, 2024, by decision of the CBA board, the discount rate was reduced by 0.25 percentage points to 7.75%. The bank also reduced the lower limit of the interest rate corridor by 0.25 percentage points to 6.25%, and set the upper limit at 8.75%, lowering it by 0.25 percentage points.