News - Armenia's Central Bank Maintains Key Rate Amid Global Risks

Amid economic uncertainties, Armenia's Central Bank has decided to keep the refinancing rate at 6.5%, balancing current risks, as announced by Chairman Martin Galstyan. He explained that the decision accounts for two sets of risks: potential global interest rate hikes and inflationary expectations, alongside the risk of global economic slowdown and deflationary pressures. The former could require a higher rate, while the latter suggests a lower rate trajectory. The Bank aims to navigate these conflicting pressures to sustain economic stability. The Council has affirmed its commitment to continual scrutiny of economic developments and readiness to take necessary actions to maintain a 3% inflation target in the medium term. The coming period will reveal more, prompting further decisions as data flows in.