BAKU, Azerbaijan, January 12. The Central Bank
of Azerbaijan (CBA) expects the realization of its baseline
inflation forecast to be highly likely and anticipates that
inflation will remain within the target range, Deputy Director of
the CBA’s Monetary Policy Department Elchin Guliyev told Trend.
He noted that for 2026, the Central Bank plans to maintain
inflation within a target range of 4±2%, although the October 2025
forecast shows annual inflation at 5.7%. Discussing the monetary
policy tools that will take priority in addressing rising external
risks, Guliyev stressed that keeping inflation within the target
range is a key condition for achieving long-term sustainable
economic growth.
“In formulating monetary policy for 2026, the Central Bank will
comprehensively assess both domestic and external factors that
could influence inflation, along with associated risks. We expect
the base scenario inflation forecast to materialize, keeping
inflation within the target range.
Based on this practice, the Central Bank will provide
macroeconomic forecasts for 2026 under both the baseline and
alternative scenarios. This approach allows for a thorough
assessment of inflation risks and enables flexible policy responses
if they materialize. The Central Bank will use its available
instruments flexibly to achieve its monetary policy objectives,” he
noted.
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