ArmInfo. The Central Bank of Armenia has reduced the refinancing rate by 0.25 percentage points - to 4.25%. As ArmInfo was told in the press service of the Central Bank of Armenia, this decision was made on September 15 at a meeting of the Central Bank Council.
In accordance with this, the rates on lombard repo were also reduced - from 6% to 5.75%, and on deposits attracted from banks - from 3% to 2.75%.
Note that the previous three cuts by the Central Bank of the Republic of Armenia in the refinancing rate, and twice by 0.25 percentage points. and the third by 0.5 p.p., dated March 17, April 28 and June 16, 2020 - from a total of 5.5% to 4.5%, in accordance with which rates on lombard repo were reduced - from 7% up to 6%, and on deposits attracted from banks - from 4% to 3%.
Meanwhile, back in August, ArmInfo presented the opinion of experts who believe that the decrease in interest rates on loans and deposits over the past five years (respectively from 14.31% to 9.95% and from 9.51% to 4.81% on average) is there is a mirror image of the refinancing rate, which decreased from 10% to 4.5% from 2015 to July 2020. `` In fact, against the backdrop of the coronavirus pandemic, in order to stimulate the economy, rates have decreased even more, almost reaching the bottom, to which there are only some 0.25%, which may still be reduced. Until the pandemic subsides, rates will remain at this level, but in an inflationary environment, they will rise>, - experts predicted even then. Considering it appropriate to add that in Russia the base rate has been reduced even more (from March 6% to July 4.25%) than in Armenia (from March 5.5% to June 4.5%), in Europe and Japan they are already working negative rates that do not help revive the economy. And in the US, the base rate has reached a historic low of 0-0.25% and the Fed rejects the scenario of its reduction to minus values, proposing to fight the risks of a deep recession with the help of fiscal stimulus. Now, taking into account the previously expressed opinion of experts, and the current actual reduction of the refinancing rate by <remaining> 0.25%, we can say that the rates have reached the bottom.
