ATTENTION to those planning to get a loan: here's what interest rates might be in 2026

Despite the reduction in interest rates on newly attracted deposits, bank lending rates in Azerbaijan have not only not decreased but, on the contrary, continue to rise.

As reported by BAKU.WS, according to the Central Bank of Azerbaijan as of December 1, 2025, the average interest rate on deposits in manats decreased from 8.71 to 6.77 percent, while the average level of lending rates increased from 17.07 to 18.68 percent. A similar trend is observed for operations in foreign currency.

Against this background, a logical question arises - what is causing the increase in the cost of loans while the funds attracted by banks are becoming cheaper.

According to official statistics, 46.8 percent of all loans issued in the country are consumer and mortgage loans. At the same time, the average interest rates on consumer loans, depending on their type, range from 13 to 26 percent.

Economist Eldeniz Amirov notes that the formation of deposit and credit rates is directly related to the level of risks in the economic system.

According to him, the decrease in deposit rates compared to last year is due to the high uncertainty of economic forecasts for the next two to three years. At the same time, the maintenance of lending rates at the level of 17-18 percent indicates an extremely high margin for banks, which the expert considers an excessive indicator.

The current situation indicates that the trend of decreasing deposit rates will most likely continue in 2026. Already, a number of banks have reduced interest on attracted funds by an average of 0.5 percentage points.

More details in the Baku TV report: