EDB expects refinancing rate in Armenia to decrease to approximately 6.25% by the end of 2026
ALMATY, December 18. /ARKA/. The Eurasian Development Bank (EDB) anticipates that Armenia's refinancing rate will decrease to about 6.25% by the close of 2026, as stated by Alexey Kuznetsov, the Head of the EDB's Research Directorate.
The Central Bank of Armenia's Board has been persistently reducing the refinancing rate since June 2023, methodically lowering it from 10.75% to 6.75% by February 2025. On December 16, the regulator further decreased the rate by 0.25%, bringing it down to 6.5%.
"The Central Bank of Armenia will proceed with caution, given the inflationary risks posed by a potential increase in global food prices and the overheating of both external and domestic demand," Kuznetsov remarked.
The EDB's forecast for 2027–2028 suggests that the rate will stabilize around 6%, aligning with the goal of keeping inflation within the Central Bank of Armenia’s target range while supporting GDP growth rates at a sustainable long-term level of approximately 5–5.5% annually.-0-
