Mon, 28 July
30.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Central Bank’s decision to raise by 0.5 percentage points key refinancing rate will not prompt rise in lending interest rates: Experts say

YEREVAN, August 16. / ARKA /. Chairman of the Armenian Association of Employers downplayed today concerns that the Central Bank’s decision to raise by 50 basis points its key refinancing rate to 8.5% will prompt a rise in lending interest rates.

Speaking at a news conference Gagik Margarian cited several reasons why interests on loans will not rise. The first reasons is that most of the banks’ resources come from deposits and other sources, not from the Central Bank.

Besides, he said the current policy is aimed at improving lending terms and as part of it international lending organizations provide fresh loans to Armenian banks for on-lending to SMEs and agriculture. He said the banks will not raise the interest rates also because they need new customers.

Armenia’s central bank raised its benchmark refinancing rate by 50 basis points to 8.50 percent earlier this week, saying it expects inflation to slowly decline in coming months amid slower economic growth, which will allow the central bank to loosen monetary conditions.

“The Central bank Board agreed that inflation will gradually return to target levels and will remain in the permissible variation range,” the CBA said.

The Armenian central bank targets inflation of 4.0 percent within a 1.5 percentage point band. M.M.-0-

spot_img

POPULAR

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on Armenia.

 Law on Cryptoassets enters into force in Armenia

The Law on Cryptoassets entered into force on July 4, 2025, the press service of the Central Bank of Armenia reports.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

LATEST NEWS

spot_imgspot_imgspot_img