The key points are temporarily unavailable. You can still read the full Story below.
Main Points
The Central Bank of Azerbaijan is expected to maintain its key interest rate at 6.5 percent during its upcoming meeting next Wednesday. This projection comes from an analytical review conducted by the Dutch banking group ING.
ING analysts noted that current inflation in Azerbaijan remains stable, fluctuating between 5.6 percent and 5.8 percent. This range falls within the Central Bank’s target of 4 percent, plus or minus 2 percent.
Despite the expectation of a steady rate, ING analysts suggested that the Central Bank may adopt a more cautious tone regarding future monetary policy. The report indicated that the regulator could emphasize inflation risks, citing rising interest rates and inflation trends observed globally and within the region. ING did not rule out the possibility that the Central Bank might issue more hawkish signals in its upcoming communications.
The Central Bank of Azerbaijan last held its key interest rate at 6.5 percent on July 31, 2026. At that time, the board also maintained the interest rate corridor, keeping the lower bound at 5.5 percent and the upper bound at 7.5 percent.
In its previous assessment, the Central Bank stated that its decision was influenced by a balance of factors. While upward revisions to inflation forecasts suggested a need for tighter monetary policy, the bank also noted that a significant surplus of foreign currency supply in the domestic market supported a more accommodative approach.
Article source: www.azernews.az | Image credit: www.azernews.az
