The Central Bank of Armenia lowered its key refinancing rate by 25bps to 5.50 percent on September 10th 2019. The central bank's decision aims to bring inflation closer to its medium term target while expectations regarding the outside deflationary environment and the progress of fiscal policy have been taken in account. Annual inflation rate in Armenia eased to 0.6 percent in August of 2019, the lowest since March of 2017, from 1.7 percent in the previous month. The board also noted than in the third quarter, economic activity in Armenia remains high. Interest Rate in Armenia averaged 7.43 percent from 2010 until 2019, reaching an all time high of 10.50 percent in February of 2015 and a record low of 5.50 percent in September of 2019.
Interest Rate in Armenia is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Armenia to stand at 5.50 in 12 months time. In the long-term, the Armenia Interest Rate is projected to trend around 5.50 percent in 2020, according to our econometric models.