ArmInfo. The Central Bank of Armenia raised the refinancing rate by 0.5 percentage points, setting it at the level of 7.75%. As ArmInfo was told in the press service of the Central Bank of Armenia, this decision was made on December 14 at a meeting of the Board of the Central Bank of Armenia.
The Central Bank's message also notes that in accordance with this, the lombard repo facility rate have also increased - from 8.75% to 9.25%, and the deposit facility rate - from 5.75% to 6.25%.
Governor of the Central Bank Martin Galstyan will present a detailed substantiation of this decision of the Central Bank Board today at 3:00 pm at a press conference.
It is pertinent to note that this is the sixth increase in the refinancing rate this year - from a total of 5.25% to 7.75%.
According to statistics, in November of this year, the official y-o-y inflation in the consumer market of Armenia amounted to 1.7%, and the y-o-y inflation (November 2021 to November 2020) reached 9.6%, against respectively the inflationary 1.3% in November and 1.6% per annum in 2020. Real inflation data for the periods under review has not yet been published by the Central Bank.
It should be noted, that 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%.
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%.
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%.
And the fifth increase took place on September 14 - by 0.25 percentage points to 7.25%, in accordance with which the rates on lombard repo were also increased - to 8.75%, and on deposits attracted from banks - to 5.75 %.
Prior to that, in 2020, the Central Bank revised the refinancing rate by reducing it four times and raising it once. In particular, after the reduction of the refinancing rate from 5.5% to 4.25% (March, April, June, September), an increase to 5.25% was followed 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%.
