YEREVAN, July 6. /ARKA/. Armenia’s Central Bank may reduce the key refinancing rate by 1.5-2% in the medium term, Atom Margaryan, the head of the Center for Innovative and Institutional Research< told journalists on Friday.
According to him, the new government’s crackdown on corruption, the cut in government spending and other steps will lead to a reduction in risks, including credit risks. In such circumstances, it will be correct for the Central Bank to conduct an expansionary and even a slightly more risky monetary and credit policy.
“It is clear that inflation risks are always there in the economy, but if there are systemic changes, the regulator may try to lower the refinancing rate by 1.5-2% and to lower also the mandatory statutory reserve for local commercial banks, thereby contributing to a reduction in lending rates,’ said Margaryan.
Armenian Central Bank decided on June 26 to leave the refinancing rate unchanged at 6%. In March 2017, the Central Bank suspended the easing of monetary policy, setting the refinancing rate at 6%. –0–
