The Central Bank of Armenia raised its policy rate by 0.25 percentage point to 6.75%, prioritizing risks from strong domestic and external demand and broadening price pressures. Twelve-month inflation was 4.4% in August, above the 3% target, while core inflation accelerated to 4.8% and spread across more categories. Armenia’s economy grew 6.7% year over year in the second quarter, above its long-term sustainable level, led by construction and services. Strong consumption indicators and increased visits to Armenia point to excess demand and upside risks to wages and services inflation, while elevated global energy prices add external price pressure. Countervailing risks include weaker global growth, export restrictions affecting sales to Russia and a decline in Armenia’s country risk premium, which could warrant a lower rate path.
2026-09-15Central Bank of Armenia
Central Bank of Armenia raises policy rate by 25 basis points to 6.75% as inflation remains above target
The Central Bank of Armenia raised its policy rate by 25 basis points to 6.75% as inflation remained above the 3% target and core price pressures broadened. Strong construction, services and external demand outweighed downside risks from weaker global growth and restrictions on exports to Russia.