Baku:Dutch bank ING has predicted that the Central Bank of Azerbaijan will maintain its key interest rate largely unchanged in 2027. This assessment is part of ING's economic and monetary outlook for the Central Asia and Caucasus (CCA) region, as reported by APA-Economics.

According to Azeri-Press news agency, ING's baseline scenario indicates that despite global inflationary pressures and major central banks' tight monetary policies, countries in the region have shown resilience. Factors such as strong national currencies, positive real interest rates, and external financial inflows are mitigating imported inflation effects.

Furthermore, ING forecasts that Kazakhstan and Uzbekistan may have the capacity for cautious interest rate cuts in 2027, while Armenia is likely to adopt a tighter monetary policy stance. The bank also highlights potential geopolitical risks that could impact the region, including increased Western oversight of trade and financial relations and economic influence efforts by Russia and China, which could affect investment and capital flows.

Additionally, ING suggests that credit ratings for Uzbekistan and possibly Armenia could be upgraded by one notch in 2027, as investors might begin to view these nations as nearing investment-grade status. It is important to note that the Central Bank of Azerbaijan last held its key interest rate steady at 6.5%, with the interest rate corridor's upper and lower limits at 7.5% and 5%, respectively, as of October 29 this year.