The Central Bank of Azerbaijan (CBA) may keep its interest rate unchanged for an extended period as inflation remains around the upper limit of its target range, APA-Economics reports, citing ING Bank, the largest financial group in the Netherlands.
It was noted that the CBA kept the interest rate unchanged at 6.5% on June 24, and the regulator's signals indicate that interest rates are likely to remain stable for a prolonged period. According to the analysts, the main reason is that the consumer price index (CPI) is hovering around the upper limit of the Central Bank's 4±2% target range.
ING stated that Azerbaijan's macroeconomic environment is characterized by strong fiscal indicators and weak economic growth.
According to the report, the outlook for trade and financial flows remains positive. In particular, BP is considering additional investment opportunities in gas projects at the Azeri-Chirag-Gunashli field. At the same time, a long-term agreement on gas supplies from the Absheron field to Türkiye is planned starting from 2029.
The document also recalled that Fitch Ratings reaffirmed Azerbaijan's BBB- credit rating, citing the country's low public debt and substantial sovereign assets as its key strengths.
According to ING analysts, the main risks for Azerbaijan and the countries of the region in the second half of 2026 will remain developments in foreign policy, persistent inflation, and access to international financial markets.
Note that the Central Bank of Azerbaijan will announce its next decision on the interest rate on July 31.
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