Armenia’s bank rates are responding slowly to the Central Bank’s rate cut, regulator 

YEREVAN, August 28. /ARKA/. Interest rates in Armenia’s banking system are adjusting slowly, despite the reduction in the monetary policy rate and short-term market rates. This is stated in the Central Bank of Armenia’s report on the implementation of the monetary policy program for the period from the third quarter of 2025 to the second quarter of 2026.

In the context of the slow adjustment of bank rates, the regulator notes that, amid high activity in certain segments of the economy, demand for lending remained high during the reporting period. In particular, this was reflected in the steady growth of consumer loans to households.

The growth rate of mortgage lending slowed somewhat due to a significant narrowing of the income tax refund program, but remained high.

On August 6, the Central Bank of Armenia maintained the refinancing rate at 6.5% for the sixth consecutive term. The Lombard repo rate remained at 8%, and the rate for attracting funds remained at 5%.

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