Central Bank Chairman Doesn’t Rule Out Hike in Loan Rates in Armenia

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.

spot_img

POPULAR

Central Bank of Armenia will issue a commemorative silver coin for the COP17 conference

On October 5, Armenia will issue a commemorative silver coin titled "COP17," dedicated to the 17th Conference of the Parties to the UN Convention on Biological Diversity, the Central Bank of Armenia’s press service reports.

Unibank Offers USD-Denominated Bonds with an Annual Coupon Rate of 6%

Unibank has completed the placement of its AMD-denominated bonds ahead of schedule: the issue, with a total volume of AMD 3 billion, was fully placed within just a few days.

Exchange rates of the euro, ruble, and dollar against the Armenian dram have fallen – Central Bank of Armenia data

The average market exchange rate of the US dollar against the Armenian dram, established on Armenia's currency market, fell by 0.27 points on October 2 compared to October 1, settling at 362.55 drams.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (September 28 – October 4)

The week's financial agenda combined discussions on reforms with the IMF, supervisory measures by the Central Bank of Armenia (CBA), and preparations for budget financing. The banking and corporate segments of the capital market saw the completion of bond placements.

Approach to financial education must focus on people’s well-being – Head of the Central Bank of Armenia

A modern approach to financial education must go beyond the mere transfer of knowledge and focus on actual financial behavior and people's well-being, stated Martin Galstyan, Chairman of the Central Bank of Armenia.

LATEST NEWS

spot_imgspot_imgspot_img