The Asian Development Bank (ADB) has announced its forecast regarding the future direction of monetary policy in Azerbaijan, APA-Economics reports.
The ADB expects the interest rate in Azerbaijan to remain largely stable until the end of 2026.
It was noted that the direction of monetary policy in the countries of the region will differ depending on inflation and domestic demand conditions.
According to the ADB’s assessment, policy rates in Azerbaijan, Armenia, Malaysia, China, and Thailand are generally projected to remain stable.
The bank says that changes toward monetary policy easing in the region are expected in 2027 as inflation gradually declines.
At the same time, the ADB notes the possibility of a slight increase in Azerbaijan’s interest rate in 2027. Favorable currency conditions and balanced inflation risks are cited as the main factors.
The report emphasizes that amid rising inflation expectations in Azerbaijan, the Central Bank has halted the monetary policy easing phase and raised its inflation forecast.
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