Azerbaijan central bank raised interest rates by 25 bps to 9% in response to increasing inflation, which reached 13.6% YoY in March. The central bank indicated that if CPI growth and inflation expectations show a steady decline, it will pause rate increases before considering lowering borrowing costs. Additionally, the central bank noted that the AZN/USD exchange rate has remained stable, as the USD supply exceeded demand in 97% of FX auctions held in the first four months of the year.