Central Bank of Armenia explained its decision to keep the interest rate unchanged

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.

spot_img

POPULAR

Central Bank of Armenia Proposes Information Security Requirements for Crypto-Service Providers

The Central Bank of Armenia (CBA) has submitted a draft regulatory act for public discussion that establishes minimum information security requirements for entities providing services related to crypto-assets.

Armenia’s Prime Minister Proposes Developing Stock Exchange Listings for the Country’s Mining Companies

Prime Minister of Armenia Nikol Pashinyan thinks that the mining sector should take the lead in developing institutions of public share ownership in the country, including through the listing of companies on stock exchanges.

Armbanks Weekly Digest: Key Events in the Armenian Financial Market (October 12–18)

Armenia’s financial agenda over the past week encompassed the development of the government securities market, regulatory changes for banking operations, cooperation with international financial institutions, and the subsidization of financing for energy storage systems.

Aggregate assets of Armenian banks grew by 20.82% to 14.46 trillion drams by the end of September 2026

As of September 30, 2026, the aggregate assets of Armenian banks reached 14.46 trillion drams, an increase of 20.82% compared to September 30, 2025, according to an operational bulletin from the ARKA news agency.

Euro exchange rate against the Armenian dram falls; dollar and ruble see slight gains — Central Bank of Armenia data

The average market exchange rate of the US dollar against the Armenian dram, as recorded in Armenia’s foreign exchange market on October 20, 2026, rose by 0.08 points compared to October 19, reaching 361.49 drams.

LATEST NEWS

spot_imgspot_imgspot_img