Galstyan names two factors that influenced Central Bank’s decision to lower refinancing rate

YEREVAN, January 30. /ARKA/. The Chairman of the Central Bank of Armenia Martin Galstyan said today that two factors influenced the regulator’s decision to lower the refinancing rate by 0.5 percentage points today, setting it at 8.75%. This is the 6th downgrade since June last year.

Glastian pointed to the downward dynamics of hard commodity prices, noting that stabilization trends are being observed.  

“In addition, due to the increased supply in the labor market, we see that the wage boom seen in recent years has some tendencies to soften. These two factors had a significant impact on our decision,” he said.  

In this regard, the head of the regulator noted that the growth of nominal wages in the private sector after 2021 reached about 30% at the peak, after which there was a significant decline, and according to the situation as of November 2023, the  annual growth amounted to 10%.

According to Galstyan, in some sectors, particularly services, wage growth remains high, but other segments are recording significant declines.  

“Thus, we have no serious concerns about the impact of this phenomenon on the further development of inflation,” he explained.  

In this context, the Central Bank Chairman noted that a certain part of refugees from Nagorno-Karabakh has already integrated into Armenia’s labor market along with workers from other countries.

“We believe that these two factors have conditioned the easing of overheating in the labor market. It also allowed us to be more bold in making today’s decision on the refinancing rate,” he explained. -0-

spot_img

POPULAR

Armenia has benefited from capital transit, but its origins pose reputational risks – Tavadyan

The report of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) on Armenia documented the country's progress in developing its anti-money laundering and counter-terrorist financing systems, but identified insufficient effectiveness in investigations, prosecutions, and confiscation of criminal assets, as well as the need for stronger oversight in several economic sectors.

A young couple created a “honey planet” in Garni

Three years ago, young spouses Narek Sargsyan and Ruzanna Danielyan created their own "honey planet" in Garni—Bee Planet.

Fitch forecasts inflation in Armenia at 4.4% in 2026, subsequently declining to 3%

The international rating agency Fitch Ratings expects inflation in Armenia to average 4.4% in 2026, after which it will gradually return to its target level of 3%.

Fitch Ratings affirmed Armenia’s rating at ‘BB-‘, maintaining a positive outlook

International rating agency Fitch Ratings has affirmed Armenia's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB-' with a Positive Outlook.

Fitch: Armenia’s International Reserve Adequacy to Remain Below That of Similar-Rated Countries by 2028

Armenia's international foreign exchange reserves have reached a record high, but their sufficiency to cover the country's external needs in the medium term will remain below the average for countries with similar credit ratings, according to a report by the international rating agency Fitch Ratings.

LATEST NEWS

spot_imgspot_imgspot_img