Armenia`s CB leaves refinancing rate unchanged 

ArmInfo.At its meeting on January 31, the Board of the Central Bank of Armenia (CBA) decided to leave the refinancing rate unchanged at 10.75%.

The Lombard repo facility rate is at 12.25%. 

The Deposit facility rate is at 9.25%.

The CBA raised the refinancing rate to 10.75% on December 13, 2022,  which proved a record after the 10.5% of 2015. The CBA raised the  refinancing rate last year: in February, from 7.5% to 8%, in March,  up to 9.25%, in August, up to 9.5%, in September, up 10.5%, in  November, from 10% to 10.5%. From 2021 to December 13, 2022, the CBA  raised the refinancing rate 12 times - from 5.25% up to 10.5%. in  previous years, the historical maximum of the refinancing rate was  recorded on February 10, 2015 - from 9.5% up to 10.5%. 

Last December, the official annual inflation on Armenia's consumer  market was 8.3% against 7.7% in December 2021. The CBA-calculated  annual inflation reached 9.5% last December against 7.3% in December  2021. 

According to the CBA forecast revised late last December, inflation  was to be within 9.5% last year (against the previously forecast 8.6%  and the actual 7.7% in 2021), with a 4% inflation target for 2025. On  the other hand, the CBA left its GDP forecast unchanged - 12.9%, with  a deceleration down to 4.6% in 2023 and down to 4.2% in 2025. 

In 2021, the CBA raised the refinancing rate six times: in February  (by 0.25 percentage point, up to 5.5%), in May (by 0.5 percentage  point, up to 6%), in June (by 0.5 percentage point, up to 6.5%), in  August (by 0.5 percentage point, up to 7%), in September (by 0.25  percentage point, up to 7.25%), and in December (by 0.5 percentage  point, up to 7.75%). During the same periods, the Lombard repo  facility rates were raised from 6.75% up to 9.25% in December, with  the Deposit facility rates raised from 3.75% up to 6.25%. 

In 2020, the CBA revised the refinancing rate downward four times,  and upward one time. Specifically, after reducing the refinancing  rate from 5.5% down to 4.25% (March, April, June, September), the CBA  raised it up to 5.25% in December. The Lombard repo and Deposit  facility rates were changed to 6.75% and 3.75% in December 2020.