Central Bank of Azerbaijan to focus on inflation control in 2026

The Central Bank of Azerbaijan (CBA) will prioritize keeping inflation within target levels next year, CBA Governor Taleh Kazimov said, Report informs.

Speaking at a meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship, Kazimov noted that monetary policy in 2026 will continue under the current framework.

According to him, exchange rate stability will remain a key anchor for maintaining price stability. According to CBA's latest projections (October 2025), based on a baseline scenario of oil at $63.9 per barrel and gas at $288 per 1,000 cubic meters, the current account balance is expected to show a surplus of around $3 billion in 2026.

Kazimov added that priorities in the financial sector are being implemented under the "Financial Sector Development Strategy for 2024–2026." The plan aims to advance insurance, capital markets, payment systems, and digital finance, while strengthening the resilience of the banking sector.

He also highlighted that the special regulatory regime introduced last year has encouraged the digitalization of financial services and the development of innovative financial products, improving financial inclusion in Azerbaijan.

Kazimov described the macro-fiscal framework for 2026 and the medium term as optimal and effective, emphasizing that ongoing fiscal reforms are designed to enhance social welfare, stimulate economic activity, and support defense capabilities, reconstruction in liberated territories, and the development of a green, innovative economy.

He concluded that fiscal policy is not expected to exert significant inflationary pressure, and the CBA will continue close coordination with fiscal authorities to ensure effective aggregate demand management.