According to the Eurasian Development Bank's (EDB) Macroeconomic Review, the Central Bank of Armenia (CBA) continues to pursue a policy of monetary easing. On July 30, 2024, the CBA reduced the refinancing rate for the eighth time this year, lowering it by 0.25 percentage points to 7.75%.
This decision was made in the context of weak inflationary pressures and declining inflation expectations. Despite some acceleration, inflation in Armenia remains below the CBA’s target range. In July 2024, inflation stood at 1.4% year-on-year, well below the target range of 4±1.5%.
Since the beginning of the monetary easing cycle in the second half of 2023, the refinancing rate has been reduced by a total of 3.0 percentage points. EDB analysts predict that the Central Bank may further reduce the refinancing rate to 7.5% by the end of 2024, given the continued weak price dynamics.
