BAKU, Azerbaijan, January 12. The Central Bank of Azerbaijan (CBA) expects the realization of its baseline inflation forecast to be highly likely and anticipates that inflation will remain within the target range, Deputy Director of the CBA’s Monetary Policy Department Elchin Guliyev told Trend.
He noted that for 2026, the Central Bank plans to maintain inflation within a target range of 4±2%, although the October 2025 forecast shows annual inflation at 5.7%. Discussing the monetary policy tools that will take priority in addressing rising external risks, Guliyev stressed that keeping inflation within the target range is a key condition for achieving long-term sustainable economic growth.
“In formulating monetary policy for 2026, the Central Bank will comprehensively assess both domestic and external factors that could influence inflation, along with associated risks. We expect the base scenario inflation forecast to materialize, keeping inflation within the target range.
Based on this practice, the Central Bank will provide macroeconomic forecasts for 2026 under both the baseline and alternative scenarios. This approach allows for a thorough assessment of inflation risks and enables flexible policy responses if they materialize. The Central Bank will use its available instruments flexibly to achieve its monetary policy objectives,” he noted.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel