Sat, 26 July
28.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Central Bank of Armenia board keeps key rate at 7.5%.

YEREVAN, March 25. / ARKA /. The Central Bank of Armenia Board said today it has decided to keep its key refinancing rate at 7.5%.

The bank said a 1.2 percent deflation was reported in February against 0.4% deflation in the same month last year, bringing the 12-month inflation at the end of February to 4.6%.

The Board said also it expects the 12-month inflation to continue the downward trend in the next months and especially in the third quarter, to drop close to the lower threshold of the target band due to elimination of the impact of increased electricity and gas prices that came into effect in 2013 July.

The Board also fixed an increased uncertainty at external sector due to geopolitical developments. The Board said low economic growth rate maintained at the beginning of the year due to slow recovery of the construction industry.

It said the ongoing facilitation of money terms along wit anticipated expansion of the fiscal policy in the second half of the year are supposed to boost the gross demand and increase inflation rate.

It said the year-end inflation rate will be within the target band. It said also the depreciation of the national currency and the lowered reserve requirement enforced at the start of the year are also expected to boost gross demand.

Last time the Central Bank revised its key refinancing rate was on February 11 when it cut it down by 0.25 percentage points to 7.5 percent. The government projection of the inflation rate for this year is 4% (±1.5%). It also expects the GDP to grow by 5.2%. -0-

spot_img

POPULAR

In Armenia, bad loans worth over $1 million have been written off under the state support program – Ministry of Social Affairs

14,757 applications for writing off bad loans have been received in Armenia within the framework of the relevant state support program, which started on February 1, 2025.

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.

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.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

LATEST NEWS

spot_imgspot_imgspot_img