Central Bank of Armenia kept the key interest rate at 6.5%, balancing risks — Galstyan
16.06.2026,
17:58
The Board of the Central Bank of Armenia has decided to keep the refinancing rate at 6.5%, as this is the optimal solution at this stage given the existing risks, stated Central Bank Chairman Martin Galstyan.
YEREVAN, June 16. /ARKA/. The Board of the Central Bank of Armenia has decided to keep the refinancing rate at 6.5%, as this is the optimal solution at this stage given the existing risks, stated Central Bank Chairman Martin Galstyan.
"The Board of the Central Bank indicated precisely this in its latest document. Having assessed the need for risk management in the two aforementioned areas and balanced them, the Board decided to keep the key interest rate unchanged," Galstyan said at a press conference on Tuesday, responding to a question from ARKA news agency.
As the Central Bank Chairman explained, this concerns two groups of risks. On the one hand, the regulator is considering a possible increase in global neutral interest rates, the development of conditions of excess domestic demand, and accelerating inflation expectations. Such factors may require a higher interest rate compared to current market expectations.
On the other hand, the Central Bank is considering the risks of a global economic slowdown, the emergence of deflationary pressure due to problems in certain export sectors, and a further decline in the risk premium in the Armenian economy. In this case, a lower interest rate trajectory would be more likely.
According to Galstyan, risks in both areas remain significant, but under the current circumstances, the regulator considers maintaining the interest rate the most justified step.
"Time will tell how the situation develops. As new data becomes available, the Council will make appropriate decisions in the future," the Central Bank governor noted.
The Central Bank Council also stated that it will continue monitoring economic development scenarios and is prepared to take the necessary measures to ensure the 3% inflation target in the medium term and maintain price stability.
"The Board of the Central Bank indicated precisely this in its latest document. Having assessed the need for risk management in the two aforementioned areas and balanced them, the Board decided to keep the key interest rate unchanged," Galstyan said at a press conference on Tuesday, responding to a question from ARKA news agency.
As the Central Bank Chairman explained, this concerns two groups of risks. On the one hand, the regulator is considering a possible increase in global neutral interest rates, the development of conditions of excess domestic demand, and accelerating inflation expectations. Such factors may require a higher interest rate compared to current market expectations.
On the other hand, the Central Bank is considering the risks of a global economic slowdown, the emergence of deflationary pressure due to problems in certain export sectors, and a further decline in the risk premium in the Armenian economy. In this case, a lower interest rate trajectory would be more likely.
According to Galstyan, risks in both areas remain significant, but under the current circumstances, the regulator considers maintaining the interest rate the most justified step.
"Time will tell how the situation develops. As new data becomes available, the Council will make appropriate decisions in the future," the Central Bank governor noted.
The Central Bank Council also stated that it will continue monitoring economic development scenarios and is prepared to take the necessary measures to ensure the 3% inflation target in the medium term and maintain price stability.
