EDB says Armenian CB will keep on cutting refinancing rate in 2024
YEREVAN, December 18. /ARKA/. The Eurasian Development Bank (EDB) believes that Armenia's Central Bank will keep on cutting the refinancing rate in the first half of 2024.
The Kazakhstan-based bank's forecast is based on the sustainability of price growth slowdown and inflation below the Central Bank’s target range (4±1.5%).
Earlier this month, Armenia's Central Bank lowered the refinancing rate by another 0.25 pp to 9.25%. That was the fifth consecutive rate cut. The decision was made against the backdrop of low inflation and easing external price pressure.
Central Bank governor Martin Galstyan stated earlier that in the absence of extraordinary developments the regulator intends to continue conservative refinancing policy
According to Armenia’s National Statistical Committee, the 12-month consumer inflation in October 2023 was 0.1% as opposed to October2022, while compared to September 2023 it was 0.3%.
The government’s projection of inflation for 2023 is 4% (±1.5%). The Central Bank’s latest forecast is around 0%. -0-
