YEREVAN, August 4. /ARКА/. The Central Bank of Armenia kept the interest rate unchanged because it has not yet seen any deviation in inflation expectations from the target level, stated Deputy Chairman of the Central Bank Hovhannes Khachatryan.
According to him, there are factors both in favor of raising the rate and in favor of keeping it at the current level.
“We have arguments in favor of raising the rate: there is certain pressure from demand, and there are also issues related to external and internal supply factors,” Khachatryan said at a press conference on Tuesday.
At the same time, he noted, the regulator currently does not see a significant divergence between inflation expectations and the target.
“Therefore, the decision has now been made to keep the rate unchanged. Further decisions may vary, including an increase.” “However, at this time, we believe it is appropriate not to raise the rate,” the Deputy Governor of the Central Bank said.
On August 4, 2026, the Central Bank Board left the refinancing rate unchanged at 6.5% for the sixth consecutive time (since December 2025).
The Armenian state budget for 2026 projects inflation at 3% (±1%). According to the Central Bank’s monetary policy report for the first quarter of this year, inflation in Armenia is expected to be 4.4-3.3% by the end of 2026, depending on scenario (A-B), with a forecast of 3.5-3.1% for 2027 and 3.2-3.1% for 2028.
