Central Bank of Azerbaijan Maintains Interest Rate at 6.5%

The Central Bank of the Republic of Azerbaijan maintained its key interest rate at 6.5% on October 29, 2026, keeping the interest rate corridor between a lower bound of 5% and an upper bound of 7.5%. This decision follows a forecast from Fitch Solutions that predicted the bank would begin reducing rates toward 6% by the end of 2026.

While holding rates steady, the bank updated its inflation projections, lowering the 2026 forecast to 5.9% from 6.1% and slightly raising the 2027 projection to 5.9% from 5.8%. These baseline figures assume stable state-regulated prices and tariffs. However, the bank warned that global geopolitical uncertainty continues to pose risks to food and energy prices.

Earlier analysis by Fitch Solutions noted that annual inflation reached 5.7% in June 2026, nearing the bank's 2–6% target range. The agency attributed some of these price pressures to supply chain disruptions caused by the US–Iran war. The bank stated that future adjustments will depend on macroeconomic indicators, foreign exchange market developments, and inflation forecasts. The next interest rate decision is scheduled for December 23, 2026.