YEREVAN, February 10. /ARKA/. The Eurasian Development Bank (EDB) expects Armenian Central Bank to end the refinancing rate cuts in the first half of 2025 as inflation approaches the target range.
On February 4, the Central Bank lowered the refinancing rate by 0.25 p.p., to 6.75%. It was the 14th consecutive refinancing rate cut since June 2023.
“Slower wage growth, lower inflation expectations, as well as weaker-than-expected economic activity prompted the regulator’s decision to continue gradually lowering the interest rate,” the EDB said in its weekly macro review.
Armenia’s state budget for 2025 envisages inflation at the level of 3% (±1%). Inflation in January amounted to 1.7% y/y after 1.5% y/y a month earlier.
The Central Bank expects inflation to be within the range of 3.9-3.2% by the end of 2025. -0-
