BAKU, Azerbaijan, September 19. Azerbaijan’s
Central Bank is expected to keep the refinancing rate unchanged,
the Netherlands-based ING Group says.
“The Central Bank of Azerbaijan is likely to keep the
refinancing rate unchanged at 6.50% at its upcoming policy meeting
next Wednesday, as current CPI remains stable at 5.6-5.8%, within
the borders of the target range of 4 ± 2%. That said, given the
upward trend in global and regional inflation and rates, the tone
of the commentary should become increasingly risk-focused, and
hawkish guidance is not excluded as a possibility,” said the
ING.
The Central Bank of Azerbaijan kept its refinancing rate
unchanged at 6.5% at a Management Board meeting on July 31,
2026.
The CBA also left the parameters of its interest rate corridor
unchanged, with the lower limit at 5.5% and the upper limit at
7.5%.
According to the central bank, the decision took into account
actual and projected inflation dynamics, as well as developments in
Azerbaijan’s domestic financial market.
The CBA noted that an upward revision to its inflation forecast
would call for tighter monetary policy, while a significant excess
of foreign currency supply over demand in the domestic foreign
exchange market supported a more accommodative stance. The balance
between these factors prompted the central bank to maintain the
interest rate corridor parameters unchanged.
