ArmInfo. Sharp reduction of the refinancing rate amid the current economic conditions is unacceptable. The rate should be reduced gradually, economist and ex- lawmaker Vardan Bostanjyan said at today's press conference on Feb 17, when commenting on ArmInfo's question.
"Several months ago, the key interest rate of the Central Bank of Armenia was 10.25%, now it is 8.5%. This means that the regulator was able to ensure its smooth reduction due to the monetary policy," the economist said, noting that a sharp reduction would trigger strong inflationary pressure.
To note, the Central Bank of Armenia (CBA) has reduced the refinancing rate from 8.75% to 8.5%. The decision to reduce the rate by 0.25 pct points was taken during the Feb 16 sitting of the CBA Board. The lombard repo and deposit rates have been fixed at 10% and 7%, respectively. The previous revision of the refinancing rate took place on 22 Dec 2015, when the CBA reduced it from 9.75% to 8.75%. Earlier, the refinancing rate was reduced on 10 Nov 2015 - from 10.25 to 9.75%, with the lombard repo rate dropping from 11.75% to 11.25%, and the deposit rate - from 8.75% to 8.25%.