On June 11, the Board of the Central Bank of Armenia decided to lower the refinancing rate by 0.25 percentage points, setting it at 8%. This is the latest reduction as part of the policy aimed at improving access to financial resources in the economy.
Additionally, the Lombard repo rate provided by the Central Bank is now set at 9.50%, and the rate on funds attracted from banks is set at 6.50%.
The Central Bank began lowering the refinancing rate in June 2023, amidst low inflation rates, striving to make financial resources more accessible. Prior to this, starting from December 15, 2020, the refinancing rate was repeatedly raised from 4.25% to 10.75% in an attempt to curb inflation.
According to the National Statistical Committee, consumer market inflation in Armenia in May this year was 0.3% compared to May last year, while deflation of 0.8% was recorded compared to April this year.
Economic growth in Armenia is projected at 7% in the 2024 state budget, with inflation set at 4% (±1.5%).
