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

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (April 6-12)

Last week, the Armenian financial market focused on, among other things, statements by the Central Bank's management on macroeconomic risks, assessments of the possible inflationary impact of external shocks, discussions of stablecoins, and the development of regional payment infrastructure.

KPMG’s audit of Renshin confirms the accuracy of its financial statements – CFO

“The audit confirms key parameters such as capital adequacy, liquidity, and asset quality՞, said Kristine Chichyan, the company’s CFO.

Travel in comfort with the Mastercard World “Travel” Cards from Unibank

Unibank offers Mastercard World "Travel" cards, designed specifically for clients who travel frequently and value convenience, reliability, and additional privileges.

ADB considers Armenia’s capital market development key to long-term financing, investment, and sustainable growth

Developing Armenia's capital market is considered key to increasing the availability of long-term financing and supporting investment, economic diversification, and sustainable growth, according to the ADB's Asian Development Outlook (April 2026).

Net remittance inflow to Armenia from abroad increased approximately 3.5-fold in two months

The net inflow of non-commercial money transfers to Armenia, from abroad through the Armenian banks amounted to $303 million in January-February 2026, compared to $87.5 million in January-February 2025, according to a report from the Central Bank.

LATEST NEWS

spot_imgspot_imgspot_img