Baku: The Central Bank of Azerbaijan (CBA) is poised to make its first interest rate decision of the year on February 4, 2026. This decision follows the previous adjustment made on December 10, when the CBA reduced the key rate and other parameters of the interest rate corridor by 0.25 percentage points. The key rate was decreased to 6.75%, with the lower bound set at 5.75% and the upper bound at 7.75%.
According to Azeri-Press News Agency, the CBA will consider forecast and actual inflation, alongside updated macroeconomic analyses, to decide on the parameters of the interest rate corridor. The decision is anticipated to align with the economic conditions prevailing at the time.
The Netherlands’ largest financial group, ING Group, recently released a report on Azerbaijan predicting that the CBA would maintain the key interest rate at its current level. The report suggests that no changes in monetary policy are expected in the near term, with the key rate likely to remain at 6.75% during the February 4 meeting. Any potential rate cut would depend on sustained disinflation and reinforced fiscal discipline.
Source: Azeri-Press news agency