ArmInfo.If the Armenian economy were more focused on investments in securities rather than loans and deposits, the key rate would have a more significant impact. The government bond market is notably affected by the refinancing rate. This opinion was share by the head of the Union of Banks of Armenia, Daniel Azatyan, during a press conference on February 25. He also pointed out that credit and deposit rates are influenced more by supply and demand rather than the refinancing rate.
He expressed hope that there may be a decrease in interest rates on loans with floating rates in the upcoming months. Azatyan noted that despite the Central Bank raising the refinancing rate from 4.25% in 2020 to 10.75% by the end of 2022 ( this level maintained until June 13, 2023 - Ed.) credit and deposit rates remained unaffected, indicates a weak correlation with the key rate.
