ArmInfo. The Central Bank of Armenia even this time kept the refinancing rate at the same level - 6%. In fact, this year, after the February fall from 6.25% to 6%, at the subsequent meetings (in March, May, June, August, September and November-December), the Central Bank left the refinancing rate unchanged. As the press service of the Central Bank of Armenia told ArmInfo, the next decision on the immutability was adopted on December 26 at a meeting of the Central Bank Council. Along with this, the Central Bank Board kept the rates for pawn-shop repo at the level of 7.5%, and deposits attracted from banks - at 4.5%.
The Central Bank Board finds it expedient to maintain the current stimulating level of monetary conditions, taking into account the need to ensure the stability of demand recovery and the overestimated effect of changes in excise and customs duties on inflation expectations. At the same time, the CB Board believes that, within the framework of the forecasted development, a phased neutralization of the stimulating monetary conditions will be required in the near future to bring inflation in the medium term to the target threshold.
The Board of the Central Bank, assessing that the risks of inflation exceeding the bar stipulated in the program for the current quarter are increasing, confirms the readiness for appropriate adjustment of monetary conditions for ensuring price stability.
The refinancing rate was revised in 2017 on February 14, when the Central Bank Board reduced it from 6.25% to 6%, at the same time reducing interest rates on pawn-shop repo from 7.75% to 7.5% and deposits attracted from banks - from 4.75% to 4.5%, with the preservation of these levels to this day. Prior to this, at the end of 2016, on December 27, the refinancing rate was reduced from 6.5% to 6.25%, along with a decrease in interest rates on lombard repo - from 8% to 7.75% and deposits attracted from banks - from 5% to 4.75%. At the end of 2015, on December 22, the refinancing rate was reduced from 9.75% to 8.75%, at the same time, the rates for pawn-office repo decreased from 11.75% to 11.25%, and on attracted deposits from 8.75% % to 8.25%.