Azerbaijan central bank sets 2026 monetary policy target

The Central Bank of Azerbaijan (CBA) said its monetary policy objective for 2026 will be to keep annual inflation within a 4±2% target range.

According to the CBA, the inflation target will be measured using the 12-month change in the consumer price index calculated by the State Statistics Committee. The bank forecasts average annual inflation of 5.7% in 2026, which is within the target band.

The CBA said exchange rate stability will remain the main anchor for price stability, while a current account surplus is expected to support balance in the foreign exchange market. Under the baseline scenario, the current account surplus is projected at $3 billion, or 3.7% of GDP, in 2026.

The central bank added it would continue to update inflation forecasts on a quarterly basis and factor in both domestic and external risks when making policy decisions.

N.Tebrizli