Armenian CB reduces refinancing rate to 6.75%

ArmInfo. The Central Bank of Armenia continues to reduce the refinancing rate, this time also by 0.25 percentage points - from 7% to 6.75%. In total, from mid-2023 to this day, the key rate has been reduced by 4 percentage points, from a historically high of 10.75% in December 2022. The decision to  further reduce the refinancing rate was made on February 4 at a  meeting of the Central Bank of Armenia Council.

In accordance with this, the rates on Lombard repos have been reduced  by the same amount - from 8.5% to 8.25%, and on deposits attracted  from banks - from 5.5% to 5.25%.

In accordance with this, over more than a year and a half, the rates  on Lombard repos and on deposits attracted from banks have decreased  by the same amount (by 4 percentage points) - from the maximum of  12.25% and 9.25%, respectively, recorded in December 2022 (and  maintained until June 2023). But for now, the current levels of the  refinancing rate, rates on Lombard repos and on deposits attracted  from banks are far from the minimum levels of 4.25%, 5.75% and 2.75%,  respectively, recorded in the second half of 2020.

According to statistics, in December 2024, compared to December 2023,  inflation was recorded at 1.5%, against a deflationary 0.6% in  December 2023 compared to December 2022.

The basic indicator of annual December inflation calculated by the  Central Bank is much lower - 0.9%, against an annual deflationary  0.4% in December 2023.

A detailed rationale for the decision of the Central Bank Council to  reduce the refinancing rate will be presented at a press conference  today at 14:00 by the Chairman of the Central Bank Martyn Galstyan.

The Central Bank of Armenia, after 2.5 years (from December 2020 to  mid-2023) of increasing the refinancing rate from a minimum of 4.25%  to a maximum of 10.75% (i.e. by 6.5 percentage points), began to  reduce the key rate starting from June 13, 2023, continuing this  policy in 2024, and as we see, in 2025