EDB: Armenia increasingly likely to complete tcycle of refinancing rate cuts in first quarter

YEREVAN, January 20. /ARKA/. The Eurasian Development Bank (EDB) forecasts a further acceleration in price growth in the coming months, with inflation expected to align closely with the target of the Central Bank of Armenia (3% ±1%). This is stated in the EDB’s weekly macroeconomic review.

“Under these conditions, the likelihood of completing the current cycle of refinancing rate reductions in the first quarter of 2025 is increasing,” the report notes.

EDB analysts point out that inflation in Armenia reached 1.5% year-on-year in December, up from 1.4% year-on-year the previous month.

“Food prices continued to rise: 2.0% year-on-year in December, up from 1.7% year-on-year the previous month. In December, the growth in service prices remained at 2.5% year-on-year (down from 3% year-on-year the previous month). Disinflation in the non-food segment slowed, registering 1.8% year-on-year, compared to 2.1% year-on-year a month earlier,” the macro review states.

The cycle of reducing the refinancing rate in Armenia has been ongoing since June 2023, with the Central Bank lowering this rate 13 times in a row, from 10.5% to the current 7%.

Inflation Figures and Forecasts

The 2025 state budget of Armenia projects inflation at 3% (±1%). In November, the 12-month inflation rate stood at 1.4%. According to the Central Bank’s monetary policy report for the fourth quarter of last year, inflation in Armenia is expected to range from 3.9% to 3.2% by the end of 2025. The forecast for 2026 is 4.2%-3.8%, while for 2027, it is 4%.

The World Bank expects inflation in Armenia to be 3.5% in 2025 and 4% in 2026. The IMF forecasts a 3.7% increase in prices in 2025. The ADB expects inflation to rise to 2.5% in 2025. The EDB anticipates inflation in Armenia to reach 3.1% by the end of 2025.-0-

spot_img

POPULAR

Central Bank of Armenia maintains the refinancing rate at 6.5%

At its meeting on Tuesday, the Central Bank's Board left the refinancing rate unchanged for the fourth consecutive time at 6.5%, the regulator's press service reported.

The Power of One Dram to ‘’Vahe Meliksetyan’’ Foundation

The April beneficiary of ‘’The Power of One Dram’’ initiative was the “Davitbek Games” Foundation.

FINTECH360 International Conference Held in Armenia

The international FINTECH360 conference took place in Yerevan, bringing together around 500 participants from more than 30 countries, including the United States, United Kingdom, France, Germany, Switzerland, Cyprus, Latvia, Luxembourg, Romania, UAE, India, Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Moldova, Uzbekistan, Georgia, and others.

The risk premium on Armenian Eurobonds has decreased from 400 to 190 basis points: Central Bank Governor

The risk premium on Armenian Eurobonds has decreased significantly, from 400 to 190 basis points, stated Martin Galstyan, Governor of the Central Bank of Armenia.

Unibank was a partner of the international forum “Yerevan Dialogue”

“Yerevan Dialogue 2026” forum held on May 5–6 brought together senior government representatives, private sector leaders, NGOs, academics, youth, and other stakeholders in the immediate aftermath of the European Political Community Summit in Yerevan.

LATEST NEWS

spot_imgspot_imgspot_img