ArmInfo. The Central Bank of Armenia raised the refinancing rate by 0.25 percentage points, setting it at 8%. As the press service of the Central Bank of Armenia told ArmInfo, this decision was made on February 2 at a meeting of the Board of the Central Bank of Armenia.
The message of the Central Bank of the Republic of Armenia also notes that, in accordance with this, the rates on Lombard repo facility rate was also increased - from 9.25% to 9.5%, and Deposit facility rate - from 6.25% to 6.5%.
Head of the Central Bank Martin Galstyan will present a detailed rationale for this decision of the Board of the Central Bank today at 3:30pm at a press conference.
It is worth noting that from 2021 to this day, this is the seventh increase in the refinancing rate - in total from 5.25% to 8%.
According to statistics, in December 2021, official y-o-y inflation in the consumer market of Armenia amounted to 1.6%, and y-o-y inflation (December 2021 to December 2020) reached 7.7%, against respectively inflationary 3.4% in December and 3.7% per annum in 2020. And the core inflation calculated by the Central Bank for December 2021 was 0.6%, and y-o-y inflation 7.3% (December 2021 to December 2020), against respectively inflationary 1.7% for December and 3.6% per annum in 2020. Meanwhile, the forecast of the Central Bank, updated at the end of Decemberforecasted higher inflation of 8.4% for 2021, with a further decline in 2022 to 5.5%.
The previous increase in the refinancing rate took place on December 14, 2021 by 0.5 percentage points - from 7.25% to 7.75%. And the Central Bank raised the refinancing rate in 2021 six times: in February (by 0.25 p.p. to 5.5%), in May (by 0.5 p.p. to 6%), June (by 0.5 p.p. .p. - up to 6.5%), in August (by 0.5 p.p. - up to 7%), in September (by 0.25 p.p. - 7.25%) and in December (by 0.5 p.p. n - 7.75%), in accordance with which, during these periods, the Lombard facility repo rates were also increased - from the initial 6.75% to December 9.25%, and Deposit facility rates - from the initial 3.75% to December 6.25%.
Before 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% followed in December. The Lombard facility repo rates and Deposit facility rates underwent corresponding changes - up to December's 6.75% and 3.75%.
