Baku:The Central Bank of Azerbaijan has announced that its primary monetary policy objective for 2027 will be to maintain inflation within the target range. This was stated by Taleh Kazimov, Chairman of the Central Bank, during a meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis, as the draft law "On the State Budget of the Republic of Azerbaijan for 2027" was discussed.

According to Azeri-Press news agency, Kazimov emphasized the importance of price stability as a foundation for balanced and sustainable economic growth. He noted that the monetary policy in 2027 will continue under the existing regime, with exchange rate stability serving as the main anchor for price stability.

Kazimov further explained that the surplus in the current account of the balance of payments will support equilibrium in the foreign exchange market next year. Short-term interest rates in the money market will remain an auxiliary operational target of the monetary policy. Existing instruments will be utilized flexibly to ensure these rates stay within the interest rate corridor, while measures to strengthen the interest rate channel of monetary policy transmission will persist.

Additionally, Kazimov highlighted the importance of coordinating monetary policy with macroprudential policy and other Central Bank initiatives. The deepening of the financial sector and strengthening of financial stability are expected to positively impact monetary policy transmission.