Baku: The Central Bank of Azerbaijan is set to cut its discount rate to 6% amid a backdrop of declining inflation, as reported by the international economic statistics portal "Trading Economics" (TE). The annual inflation rate in Azerbaijan is expected to decrease to 3.5% by the end of the year.

According to Azeri-Press news agency, Trading Economics has maintained its inflation forecasts for Azerbaijan, predicting a steady decline throughout the year. The forecasted inflation rates are 4.7% for the first quarter, 4.3% for the second quarter, 4% for the third quarter, and eventually dropping to 3.5% in the fourth quarter.

The statistics portal also forecasts a corresponding reduction in the Central Bank of Azerbaijan's discount rate. TE anticipates that the Central Bank will maintain a stable discount rate of 6.5% through the second quarter, before reducing it to 6.25% in the third quarter, and ultimately to 6% in the final quarter of the year. It is noteworthy that the Central Bank had previously reduced the interest rate by 0.25 percentage points to 6.5% on February 4 of this year.