The Central Bank of Armenia Board raised the policy rate by 25 basis points to 6.75%, with five members supporting an increase and three voting to hold it at 6.5%. The majority favored a higher rate path than financial markets expected, citing inflation above the 3% target and mounting risks from strong domestic and external demand. High economic activity, rapid credit and import growth, increased tourism, wage and services price pressures, and rising real estate prices pointed to a risk of excess demand. Elevated global energy and commodity prices added to the inflation outlook. Members who favored no change emphasized countervailing risks from restrictions on Armenian exports to Russia, which could create excess domestic supply, weaken economic activity and reduce consumer and investment confidence.
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% in a 5-3 vote. The majority cited above-target inflation and strong demand, while dissenters emphasized disinflationary and growth risks from restrictions on exports to Russia.