Armenia Refinancing Rate

The Central Bank of Armenia kept its benchmark interest rate unchanged at 6.5% during its February 2026 meeting. Policy makers also kept the deposit and lending rates steady at 5% and 8%, respectively. The decision reflected a balance between inflationary pressures and economic demand, as annual headline inflation rose to 3.3% in December from 3.1% in the prior month, remaining below the Central Bank’s 4% target, while core inflation stood at 4.3%. The board noted that domestic economic activity remained robust, supported by growth in construction and services as well as temporary factors in manufacturing, though medium-term risks persist. In view of these conditions, the board opted to maintain a steady policy stance to manage both inflationary pressures and factors that could dampen growth, while supporting stability around its 3% medium-term target.

The Central Bank of Armenia cut its benchmark interest rate by 25 bps to 6.5% at its December 2025 meeting, marking the second and final cut this year and bringing borrowing costs to their lowest level since July 2021. Policymakers also reduced deposit and lending rates to 5% and 8%, respectively. The decision came as headline inflation slowed to 3.1% in November, close to the 3% target, while core inflation rose to 3.8%, with recent pressures seen as supply-driven and demand-neutral. Economic activity remained strong, although uncertainty persisted over domestic demand and weaker growth in key trading partners. The board flagged two-sided risks, ranging from global inflation and fiscal pressures to softer external and domestic demand, including real estate adjustments. Overall, policymakers signaled a gradual easing path ahead, with markets pricing the policy rate near 6.25% over the next 12 months, while reaffirming their commitment to price stability at 3%.

The Central Bank of Armenia kept its benchmark interest rate unchanged at 6.75% during its November 2025 meeting, maintaining the stance for the sixth consecutive session. Policymakers also held the deposit and lending rates at 5.25% and 8.25%, respectively. The decision reflected balanced inflation and demand conditions, as annual headline inflation rose to 3.7% in September from 3.5% in August, while core inflation stood at 3.5%. The board highlighted ongoing risks to global growth and persistent geopolitical uncertainty but noted strong domestic activity, led by construction and services. Inflation expectations and wage growth have stabilized, while external demand for Armenian goods and services has improved in recent quarters. The board decided to maintain a steady policy stance to support price stability around its 3% medium-term target, while continuing to assess future developments in inflation and demand dynamics.