The Central Bank of Azerbaijan (CBA) will continue to prioritise keeping inflation within its target range as the main objective of its monetary policy in 2027. CBA Governor Taleh Kazimov made the remarks during a meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, where lawmakers discussed the draft law on the state budget of the Republic of Azerbaijan for 2027. Kazimov said price stability would continue to provide the foundation for balanced and sustainable economic growth.
Exchange rate stability will remain the main anchor of price stability in 2027. A surplus in the current account of the balance of payments will continue to support equilibrium in the foreign exchange market next year,” he said. The CBA Governor noted that short-term interest rates in the money market would remain an auxiliary operational target of monetary policy in 2027.
He added that the Central Bank would make adequate and flexible use of its existing instruments to ensure that short-term money market rates remain within the interest rate corridor. Measures to strengthen the interest rate channel in monetary policy transmission would also continue. Kazimov further emphasised that monetary policy would remain coordinated with macroprudential policy and other areas of the Central Bank's activities.
According to him, deeper financial sector development and stronger financial stability would have a positive impact on the effectiveness of monetary policy transmission. Here we are to serve you with news right now. It does not cost much, but worth your attention.
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