Azerbaijan's central bank cut its corridor floor to 5% while holding the discount rate at 6.5%, easing policy even as annual inflation runs at 5.7%.

Two central banks moved in opposite directions on the same day, and both were reacting to the same global supply picture. Azerbaijan held its discount rate at 6.5% but lowered the corridor floor to 5%, a technical easing that widens the band around a policy rate already below headline inflation of 5.7%; the SARB raised its policy rate to 7.25% explicitly citing Middle East and Black Sea supply shocks, with longer-run expectations at 4% rather than its 3% target. The Dutch first-half deficit of €8bn shows the fiscal side of the same pressure: spending of €273bn outran revenue of €265bn, and the shortfall was financed into a debt stock of €524bn even as the debt-to-GDP ratio slipped to 43.7% of GDP. Liquidity, meanwhile, is being absorbed rather than deployed — the RBI's overnight segment cleared at 5.09% on volume of ₹725,595.8 crore, close to the floor of its corridor, while Latvia's liquidity coverage ratio fell by roughly a quarter as lending accelerated. The thread running through the day is that central banks and governments are managing the same supply-driven inflation with different tools, and the divergence in their responses is the story.