RA Central Bank leaves refinancing rate unchanged, 6.5% 

ArmInfo.  The Central Bank of Armenia decided to keep the refinancing rate at 6.5% in February 2026. This decision was made on February 3 at a meeting of the  Central Bank Board, according to which the rates on Lombard repos  (8%) and on deposits from banks (5%) were also maintained at the  previous level.

In total, from mid-2023 to 2026, the key rate was reduced by 4.25  percentage points (from a historical maximum of 10.75%). Accordingly,  over this period, the rates on Lombard repos and on deposits from  banks were reduced by the same amount (by 4.25 percentage points)  from the maximums of 12.25% and 9.25%, respectively, set in December  2022 (and maintained until June 2023). However, the current levels of  the refinancing rate, Lombard repo rates, and bank deposit rates are  far from the minimum levels of 4.25%, 5.75%, and 2.75%, respectively,  set in the second half of 2020.

According to statistics, inflation in December 2025 compared to  December 2024 was 3.3%, compared to 1.5% in December 2024 compared to  December 2023. The Central Bank's baseline annual inflation rate for  December was 4.3%, compared to 0.9% a year earlier during the same  period.

Central Bank Chairman Martyn Galstyan will present a detailed  rationale for the Central Bank Council's decision to keep the  refinancing rate unchanged at a press conference today at 2:00 PM.  The press conference will also be broadcast online.

As a reminder, the Central Bank of Armenia, after raising the  refinancing rate from a minimum of 4.25% to a maximum of 10.75%  (i.e., by 6.5 percentage points) for 2.5 years (from December 2020 to  mid-2023), began cutting the key rate starting June 13, 2023,  continuing this policy in 2024 and 2025. Specifically, in February  2025, the key rate was reduced from 7% to 6.75%, maintaining this  level until mid-December, when the second reduction of the year to  6.5% followed.

Starting in 2025, the inflation target is set at 3% with a tolerance  of +/- 1 percentage point. (versus the previous 4%, +/- 1.5  percentage points). The RA Law "On the State Budget of Armenia for  2025" stipulates that the Central Bank will henceforth be guided by  this inflation target when making monetary policy decisions. Reducing  the inflation target is an important prerequisite for the  implementation of the joint approach of the Central Bank and the  Government to ensure long-term stable economic growth and improved  public welfare.