The Central Bank of Armenia has proposed to legally reduce the inflation target from 4% to 3%. The relevant draft law amending the "RA State Budget Law" was presented to the National Assembly by Central Bank Chairman Martin Galstyan.
According to Galstyan, although achieving a lower inflation rate is challenging, this measure will help reduce interest rates on loans and the expected return on business investments. The Central Bank Governor expressed confidence in the initiative's success, highlighting the high international regard for Armenia’s monetary policy.
The Central Bank acknowledges that, in the short term, lowering the target inflation rate will have a minimal impact on fiscal policy. However, in the medium and long term, it will create a more stable and predictable economic environment.
Armenia’s 2024 state budget anticipates economic growth of 7%, with inflation set at 4% (±1.5%).
