Fitch Solutions predicts reduction in key interest rate in Azerbaijan by 2026

The Central Bank of Azerbaijan (CBA) will maintain a cautious, data-driven monetary policy in 2026-2027, Report informs.

These expectations were presented by the international analytical firm Fitch Solutions (FS), a member of the Fitch Group.

According to FS, the key rate will decrease to 6.75% by the end of 2025 [forecast unchanged], and to 6.5% by the end of 2026 [previously expected at 6.25%]. The company notes that this level will be lower than the average of 7.6% recorded in 2020-2024. This reduction is due to a moderate weakening of economic growth amid lower global oil prices.

The CBA Board maintained the key rate at 7% on October 22, leaving the lower limit of the interest rate corridor at 6% and the upper limit at 8%.

The next decision on the interest rate corridor parameters will be published on December 10.