“We'll wait and see": Central Bank chairman on possible impact of Trump's customs wars on inflation in Armenia

YEREVAN, February 4. /ARKA/. Today’s decision of Armenia’s Central Bank to cut the refinancing rate by 0.25 percentage points to 6.75% is comprehensive and does not focus on a single factor, the regulator's head Martin Galstyan said at a press conference, responding to a question of ARKA news agency on the possible impact of customs wars, particularly by the US, on inflation in Armenia.
“The factor you mentioned (customs wars) is important, but not the only one,” he said.
According to him, possible trade wars, anchoring inflation at a definitely higher level as a result, as well as probably a higher neutral rate are in the center of the Central Bank's attention.
Galstyan pointed out that from the point of view of all analysts, the additional tariffs announced by the U.S. is not a one-time action but “the beginning of a long process of negotiations.”
“We'll live and see, I don't want to make any inferences now. When we receive information, we analyze it and integrate it into the decision-making mechanism,” the Central Bank head said.
On February 4, the Central Bank of Armenia lowered the refinancing rate by 0.25 p.p. to 6.75%. This was the 14th consecutive lowering of the refinancing rate since June 2023. -0-
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