Central Bank of Armenia Holds Refinancing Rate at 8.50%

The Central Bank of Armenia maintained its key refinancing rate unchanged at 8.50%.  The Central Bank Board was cited as believing that the likelihood of an expanding inflationary environment is relatively low, noting that it can be curbed with the help of current interest rates to make it fluctuate within the target range of 4% (± 1.5%)

Previously the Bank raised the refi rate by 25 basis points to 8.50% in April this year.  Armenia reported annual consumer price inflation of 9% in May, down from 11.5% in March, and above the inflation target range of 2.5%-5.5%.  The Armenian economy is projected to grow by 4.6% this year.

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