EDB expects Armenia's refinancing rate cut cycle to end in H1 2025
YEREVAN, December 16. /ARKA/. The Eurasian Development Bank (EDB) expects Armenia's refinancing rate cut cycle to end in H1 2025 as inflation approaches the Central Bank’s target range (3% +/- 1%).
"The Central Bank of Armenia reduced the refinancing rate by 0.25 percentage points to 7.0% at its meeting on December 10. The decision was made amid slowing wage growth and lower inflation expectations. Consumer price growth was 1.4% y/y in November, compared to 0.6% y/y in October," the EDB weekly macro review states.
Armenia’s state budget for 2025 , approved on December 4, sets the 12-month inflation target at 3% with an acceptable range of ±1 percentage point.
The Central Bank decided to lower the target, which had been set at 4% (±1.5 percentage points) since 2006, believing that the Armenian economy is ready for a new stage of development.
According to forecasts by Central Bank Governor Martin Galstyan, Armenia will approach the target inflation rate next year, and this year it will remain below 4%.-0-
