YEREVAN, 22 October. /ARKA/. Amid low inflationary pressures, the Central Bank of Armenia (CBA) has continued its gradual reduction of the policy rate to steer inflation towards its target, IMF said in a press release following an IMF team’s visit to Armenia, led by by IMF Armenian Mission Chief Iva Petrova from 18 September to 1 October.
Future rate decisions should continue to be guided by the evolution of inflation and inflation expectations.
It says the flexible exchange rate should remain a key shock absorber, and the authorities’ commitment to maintaining healthy international reserve buffers is welcome. Ongoing efforts to improve monetary, foreign exchange, and financial regulatory transparency are helping enhance CBA’s policy communication, and efforts should continue to strengthen the CBA’s prudential and supervisory frameworks. With its continuous financial risk monitoring, including the recent increase in the countercyclical capital buffer, the CBA remains vigilant in mitigating financial sector risks.
“The government’s structural reform agenda appropriately focuses on fostering inclusive growth, including by boosting labor force participation among the youth, women, and vulnerable populations, encouraging diversification in the country’s export basket and markets, and improving the business environment. Achieving these objectives requires developing and implementing concrete, fully costed employment and export strategies, prioritizing governance reforms, upgrading the insolvency framework, and rationalizing investment incentives to support quality investments.
On 10 September this year, the Central Bank of Armenia lowered the refinancing rate by 0.25 p.p. to 7.50%. That was the 11th consecutive lowering of the refinancing rate since June last year, and the sixth since the beginning of the current year. -0-
