Baku: The Central Bank of Azerbaijan (CBA) will keep its key interest rate unchanged, as outlined in an assessment by the Netherlands' largest financial group, ING Group, APA-Economics reports.

According to Azeri-Press News Agency, despite increasing global inflation risks, the Central Bank of Azerbaijan will maintain the key interest rate at 6.50% for an extended period. The analysis highlights that Azerbaijan is among countries with a low inflation base, with current inflation rates ranging between 4-6%. Since the inflation increase is primarily driven by cost factors, there is no immediate need to alter the Central Bank's interest rate policy. Analysts point out that Azerbaijan, along with Armenia, will maintain unchanged interest rates in the region.

In contrast, ING Group identifies Kazakhstan and Uzbekistan as countries moving away from higher inflation levels. Kazakhstan has reduced its annual inflation to a single-digit level of 9.8%, while Uzbekistan might consider cutting interest rates in 2026. However, the prevailing global inflation environment restricts the scope for significant monetary easing.