YEREVAN, 12 November. /ARKA/. The Central Bank of Armenia will continue its consistent policy on demand regulation and fixing inflation and inflation expectations, said the head of the Central Bank Martin Galstyan.
‘In this context, we propose to reduce the inflation target and set it at 3%. This will have an insignificant fiscal impact in the short term, while in the medium and long term, it
Will contribute to reducing the volatility of the economic environment and inflation and ensure a favourable and predictable environment for economic and investment activities,’ he said in parliament on Tuesday during the presentation of Armenia’s 2025 budget.
Galstyan said earlier that the Central Bank of Armenia was considering lowering the inflation target from the current 4 per cent to 3 per cent, as it has ‘built up sufficient muscle mass to do so.’
Armenia’s state budget for 2024 envisages inflation at the level of 4 per cent (±1.5 per cent). According to the Central Bank, inflation is expected to be within 2.1-2 per cent in 2024, The forecast for 2025 is 4-3.2 per cent. -0-
