YEREVAN, March 20. /ARKA/. High consumer demand in Armenia indicates that inflation risks will persist, according to the Eurasian Development Bank (EDB) analysts.
“On March 14 the Central Bank of the Republic of Armenia decided to keep the refinancing rate unchanged at 10.75%. The regulator noted the weakening of external price pressure on the Armenian economy, strengthening of the dram and tightening of monetary policy among disinflationary factors. At the same time, a high level of consumer demand indicates that inflation risks persist,’ the EDB said.
‘In January and February, Armenia’s consumer price index growth remained at 8.1% y/y, while core inflation slowed to 8.4% y/y in February from 9.1% y/y a month earlier,’ the EDB said in its weekly macro review.
The head of the Central Bank of Armenia Martin Galstyan stated earlier in March that the 12-month inflation, according to the monetary policy scenario, will gradually slow down and stabilize around the target rate of 4% from the second half of 2023.
The regulator last changed the refinancing rate on December 13, raising it by 0.25 percentage points to 10.75%.
Armenian government’s growth projection for 2023 is 7%, and the inflation is set at 4% (±1.5%). -0-
