The Board of the Central Bank of Armenia (CBA) raised the policy rate by 25 basis points to 6.75% in its third-quarter decision, prioritising risks from above-target inflation, broadening price pressures and excess demand. Over the past year, it held the rate at 6.75% through November 2025, cut it by 25 basis points to 6.50% in December and maintained that level through August 2026. The CBA set the Lombard Repo Facility Rate at 8.25% and the Deposit Facility Rate at 5.25%. Annual inflation reached 4.4% in August, above the 3% target, while economic growth accelerated to 6.7% year on year in the second quarter, driven mainly by construction and services and accompanied by strong imports and retail trade. Armenia’s short-term country risk premium remained at historically low levels, while increased visits supported external demand. Globally, persistent regional conflicts, elevated energy prices and trade-route disruptions have intensified inflation risks even as demand and medium-term growth prospects weaken. The CBA said it would continue monitoring economic scenarios and stands ready to act to ensure the inflation target and medium-term price stability.
2026-09-15Central Bank of Armenia
Central Bank of Armenia Raises Policy Rate by 25 Basis Points to 6.75%
The Central Bank of Armenia raised its policy rate by 25 basis points to 6.75%, citing above-target inflation, broadening price pressures and excess demand. Annual inflation reached 4.4% in August against a 3% target, while second-quarter economic growth accelerated to 6.7% year on year.