Central Bank of Azerbaijan maintains interest rate at 6.5%

The Central Bank of Azerbaijan has decided to keep its key interest rate at 6.5%, maintaining the corridor with a lower limit of 5% and an upper limit of 7.5%. This decision, made by the Board on October 29, 2026, considers the dynamics of headline and core inflation, inflation expectations, and the balance of risks.

Annual inflation was recorded at 5.5% in September, remaining within the target range of 4±2%. This represents a 0.2 percentage point decrease from August. Price increases were driven by food, alcoholic beverages, and tobacco products at 6.9%, paid services at 5.1%, and non-food products at 3.6%. Core inflation stood at 4.9%.

The Bank's forecasts suggest annual inflation will reach 5.9% by the end of both 2026 and 2027. Inflation risks are primarily linked to the international environment, specifically the potential for rising energy and food prices due to global geopolitical uncertainties and their subsequent impact on domestic prices.