Azernews.Az

At its February 2026 meeting the Central Bank of Azerbaijan (CBA) did something that, a year ago, would have looked premature. It eased again. All three parameters of its interest-rate corridor were trimmed by a quarter point, taking the policy rate to its lowest level since September 2021. The move was modest in size but revealing in tone: the CBA sounds more at ease with risk, and more confident that inflation is no longer the threat it once was. The official justification rests on a familiar triad, prices, expectations and buffers, but the emphasis has shifted. Inflation is not merely “within target”, as the bank had said before; it is now described as declining, with the stubborn residue “under control”. Core inflation at...

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