Armenian Central Bank Rate Cut
June 13, 2023
Armenia got its first central bank interest rate cut since 2020. Early in the pandemic, the Central Bank of Armenia’s refinancing rate had been at 5.25% from May 2020 until an initial hike in February 2021. In the face of accelerating CPI inflation that crested at around an 11-year high of 10.3% last June, the refi rate increased by 250 basis points in 2021 and a further 300 bps in 2022 to 10.75%. As of last month, CPI inflation had receded all the way to a 31-month low of 1.3%, well below the central bank target of 4.0%. Consequently, Armenian officials felt comfortable trimming their key interest rate back to 10.5% today.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Armenia
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