The Central Bank of Azerbaijan (CBA) is expected to keep its key interest rate unchanged at 6.5% at its meeting next Wednesday. According to an analytical review by Dutch banking group ING, the CBA is likely to maintain the key rate at 6.5% at its upcoming meeting. At the same time, ING analysts believe that against the backdrop of rising inflation and interest rates globally and across the region, the CBA’s comments could place greater emphasis on inflation risks.
The bank also does not rule out the possibility that the regulator could issue more hawkish signals regarding future monetary policy. The CBA last kept its key interest rate unchanged on July 31, 2026. Under a decision by the CBA Board, all parameters of the interest rate corridor were left unchanged.
The key interest rate was maintained at 6.5%, while the lower and upper bounds of the interest rate corridor remained at 5.5% and 7.5%, respectively. According to the CBA, the decision on the parameters of the interest rate corridor took into account actual and projected inflation dynamics, as well as developments in the domestic financial market. On the one hand, an upward revision to the inflation forecast creates conditions for tighter monetary policy.
On the other hand, the significant excess of foreign currency supply over demand in the foreign exchange market supports a more accommodative monetary policy. The CBA said the balance between these factors resulted in the decision to keep the parameters of the interest rate corridor unchanged. Here we are to serve you with news right now.
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