The Central Bank of Armenia held its refinancing rate at 6.50% in February, balancing upside risks from higher global neutral interest rates and possible excess domestic demand against risks of weaker global and domestic demand. After holding the rate at 6.75% from February through November 2025, the central bank cut it by 25 basis points to 6.50% in December. Annual consumer price inflation slowed to 3.3% in December, while core inflation accelerated to 4.3%, against a medium-term inflation objective of 3%. Economic activity accelerated to 14.1% year on year in December, driven by construction, services and short-term factors in manufacturing, while strong lending indicated potential excess demand even as other indicators pointed to weaker demand conditions. Globally, weakening demand, falling oil prices and disinflationary food-price pressures contrasted with continued volatility risks from geopolitics and international trade tensions. The central bank reaffirmed its commitment to take appropriate policy action to ensure medium-term price stability.
Central Bank of Armenia2026-02-03
Central Bank of Armenia Holds Refinancing Rate at 6.50%
The Central Bank of Armenia held its refinancing rate at 6.50% in February, balancing upside inflation risks from potentially excess domestic demand and higher global neutral interest rates against weaker global and domestic demand. Annual inflation slowed to 3.3% in December, while core inflation rose to 4.3%, above the 3% medium-term objective.