ING forecasts faster monetary policy tightening in Azerbaijan

The Central Bank of Azerbaijan (CBA) is expected to raise its discount rate by 0.25 percentage points to 7.5% at its upcoming board meeting on April 23, as projected by the Netherlands-based ING Group, one of the leading financial institutions, Report informs.

ING’s forecasts indicate that the discount rate will remain at 7.5% until the third quarter of 2026. Experts predict subsequent increases to 7.75% in the third quarter and 8% in the fourth quarter of 2026.

Notably, ING had previously anticipated monetary tightening to reach 7.5% starting in the third quarter of next year, followed by a rise to 7.75% in the fourth quarter.

On March 12, 2025, the CBA maintained the discount rate at 7.25%, underscoring the gradual progression of its monetary policy.