Central Bank of Armenia raised refinancing rate from 6% to 6.5%

ArmInfo. At its meeting today, the Board of the Central Bank of Armenia decided to raise the refinancing rate by 0.5 percentage point to 6.5%.  The Lombard repo facility rate at 8.0%. The Deposit facility rate at 5.0%. ArmInfo was informed  about this by the press service of the Central Bank of Armenia.

A detailed justification of this decision of the Central Bank Board  today (at 3:30 pm) at a press conference will be presented by head of  the Central Bank Martin Galstyan.

To note, this is the third upward revision of the refinancing rate in  2021. For the first time, the Central Bank raised the refinancing  rate on February 2 - from 5.25% to 5.5%. In accordance with this, the  rates on lombard repo increased by 0.25 percentage points - from  6.75% to 7%, and on deposits attracted from banks - from 3.75% to 4%.  The second increase in the refinancing rate followed on May 4 - by  0.5 percentage points to 6%, in accordance with which the rates on  lombard repo were also increased - to 7.5%, and on deposits attracted  from banks - to 4.5%.  Prior to that, in 2020, the Central Bank  revised the refinancing rate four times downward and once upward.  In  particular, after the reduction of the refinancing rate from 5.5% to  4.25% (March, April, June, September), December was followed by an  increase to 5.25%. And the corresponding change was undergone by the  rates on lombard repo and on deposits attracted from banks.