YEREVAN, December 16. /ARKA/. The Central Bank of Armenia’s decision to lower the refinancing rate by 0.25 percentage points to 6.50% is seen as moderately advantageous for the nation’s economy and financial markets, according to Hovak Hovakimyan, Director of Freedom Broker Armenia, speaking to ARKA.
“This decision by the Central Bank comes after the release of consumer price index data, which shows a decrease in inflation to 3.1% year-on-year in November, down from 3.7% in October. The price increase aligns with the Central Bank’s target (3% plus 1 percentage point), but falls short of the forecast range (3.7-4.1% depending on the scenario) outlined in the monetary policy report for Q3 2025. Additionally, the regulator is hinting at market expectations for another 0.25 percentage point rate cut in the medium term,” he remarked.
Hovakimyan believes that this rate reduction could positively influence domestic demand and further boost economic activity, which has been accelerating in recent months.
“The Central Bank’s action may also bolster the bond market, leading to a downward trend and a reassessment of interest rate risks within the debt market,” he added.
On December 16, the Central Bank of Armenia’s Board decided to reduce the refinancing rate by 0.25% to 6.50%. This marks the first decrease in the refinancing rate since February 2025, following six consecutive months of no change. The Lombard repo rate and the cash attraction rate were also lowered to 8.00% and 5.00%, respectively.-0-
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