YEREVAN, May 6. /ARКА/. The Central Bank of Armenia decided today to leave the refinancing rate unchanged at 6.75% taking into account a set of factors such as the continued high uncertainty surrounding the US economic policy, declining confidence in the global economy, growth slowdown and a possible weakening demand in Armenia, the head of the regulator Martin Galstyan said at a press conference on Tuesday.
According to him, these factors underlie Scenario B – one of the two scenarios that the Central Bank relies on when determining the refinancing rate.
According to Galstyan, Scenario A is based on uncertainties, including factors related to geopolitics and the fiscal policy.
“These uncertainties require higher interest rates than market expectations to ensure price stability,” he said, adding that the regulator sees the need to manage the significant macroeconomic implications that follow from this scenario. -0-
