At its meeting on October 29, the Board of the Central Bank of Armenia decided to reduce the refinancing rate by 0.25 percentage points to 7.25%.
According to the regulator’s decision, the lombard repo rate is set at 8.75%, and the deposit rate at 5.75%.
Since June 2023, in response to low inflation, the Central Bank has been gradually lowering the refinancing rate to enhance the accessibility of financial resources within the economy.
This follows a lengthy period of tightening monetary policy: from December 15, 2020, the regulator steadily increased the refinancing rate from 4.25% to 10.75% to curb inflationary pressures.
According to experts, the current easing of monetary policy is intended to stimulate business activity while maintaining inflation control.
Earlier, BMG reported that consumer prices in the country from January to September 2024 remained at the same level as the corresponding period last year, showing zero growth.
Minimal inflation was recorded in September 2024, with prices rising by 0.6% year-on-year and by 0.2% compared to August of this year.
The 2024 state budget projected economic growth at 7% and set an inflation target of 4% (±1.5%).
