YEREVAN, September 15. /ARКА/. Central Bank of Armenia Chairman Martin Galstyan didn’t rule out an increase in loan interest rates in the country if the monetary policy tightening cycle continues.
He said this at a press conference on Tuesday, responding to a question about the possible impact of today’s Central Bank Board decision to raise the monetary policy rate (by 0.25 percentage points to 6.75%) on loan interest rates.
The Central Bank of Armenia’s rate cut cycle began in August 2023, when the regulator lowered it from 10.75% to 10.5%. The rate was subsequently reduced in stages, reaching 6.5% in December 2025, after which it remained at that level. The September 15 decision marked the first rate increase since December 2022.
“If the cycle continues and we see that what’s happening is not a temporary phenomenon but a trend, then yes, we should expect higher interest rates in the Republic of Armenia, as in virtually all countries around the world,” Galstyan said at a press conference on Tuesday.
At the same time, he emphasized that the increase in the monetary policy rate does not mean an immediate rise in bank rates.
“Transmission mechanisms in different countries operate with a time lag, depending on the underlying factors. The transmission mechanism can operate very quickly, or very slowly,” the head of the Central Bank explained.
According to official statistics, the interest rate on commercial bank loans was 12.51% in July, compared to 13.18% in June.
