ArmInfo.The Central Bank of Armenia has once again raised the refinancing rate - from 7% to 7.25%. As ArmInfo was told in the press service of the Central Bank of Armenia, this decision was made by the Central Bank on September 14 at a meeting of the Council. In this regard, rates on lombard repo and on deposits attracted from banks were also increased by 0.25% percentage points - to 8.75% and 5.75%, respectively.
It is pertinent to note that in August of this year official annual inflation in the consumer market of Armenia reached 8.8% (data of the RA Statistical Committee), while real inflation increased to 8% (data of the Central Bank of Armenia), against 1.8% and 1.1% per annum, respectively, in the same month of 2020. To note, in 2021 this is the fifth increase in the refinancing rate. For the first time, the Central Bank raised the refinancing rate on February 2 - from 5.25% up to 5.5%. Accordingly, rates on lombard repo were 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%. The third increase in the refinancing rate followed on June 15 - up to 6.5%, in accordance with which the rates on lombard repo were also increased - up to 8%, and on deposits attracted from banks - up to 5%. And the fourth increase in the refinancing rate took place on August 3 - by 0.5 percentage points to 7%, in accordance with which the rates on lombard repo were also increased - to 8.5%, and on deposits attracted from banks - to 5.5% .
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), an increase to 5.25% took place in December. And the corresponding change was undergone by the rates on lombard repo and on deposits attracted from banks - up to December 6.75% and 3.75%.
