Central Bank of Armenia lowers refi rate to 6.5% pa

YEREVAN. Dec 16 (Interfax) - The board of the Central Bank of Armenia took the decision to lower the refinancing rate by 25 basis points (bps) to 6.5% per annum on Tuesday, the regulator said in a statement.

The rate had been 6.75% since February 4, when it was lowered by 25 bps from 7% pa. The rate was then left unchanged for seven scheduled rate meetings consecutively. It was lowered eight times in 2024.

"Annual inflation decreased in the fourth quarter of 2025 and stood at 3.1% in November. Moreover, baseline inflation grew slightly to 3.8% in annual terms. In Q4, there is still a risk that demand will continue to slow, worldwide and in Armenia's key partner countries, while inflation pressure in the U.S. has increased [...] There is ongoing uncertainty regarding the mid-term consequences of U.S. fiscal policy, including the influence of increased public debt on long-term interest rates," the Central Bank said.

It said that oil prices had also fallen, as had food prices in recent months. However, geopolitical uncertainty and tensions in international trade relations remain key factors driving global inflation volatility.

The Statistical Committee of Armenia said that Armenia had 0.3% inflation in 2024, versus the target of 4% +/- 1.5 pp. The budget targets average inflation of 3.5% in 2025.