Azerbaijan's central bank cut on Wednesday its key refinancing rate to 4.25 percent from 4.75 percent, with effect from May 1, amid low annual inflation.

"Given a low level of inflation, as well as priorities for diversification of the national economy and boosting investment activity, this decision has been made," the central bank said in a statement.

The central bank cut the refinancing rate to 4.75 percent from 5.00 percent in February 2013.

Monthly inflation in March was 0.3 percent, compared with 0.4 percent in February and 0.6 percent in March 2013.

Annual inflation in 2013 was 2.4 percent. The government expects annual inflation of 3.5 percent in 2014.

Bakudaily.az