Armenian Interest Rate-Cutting Cycle Extended – Currency Thoughts

Armenian Interest Rate-Cutting Cycle Extended

February 4, 2025

The Central Bank of Armenia’s policy interest rate was cut today by 25 basis points to a 3-1/2-year low of 6.75%. From a peak of 10.5% maintained from December 2022 until June 2023, the Armenian refinancing rate had been cut without interruption by 150 basis points in what remained of 2023 and a further 225 bps last year. Although Armenian consumer price inflation rose to a 20-month high in December, such remained well below the central bank’s target of 4%. After cresting at 10.3% in mid-2022, CPI inflation dropped as low as 1.7% in February 2024 and was only at 1.5% last month.

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags: Central Bank of Armenia

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on Tuesday, February 4th, 2025 at 6:56 am and is filed under Central Bank Watch.
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