Armenia's Central Bank cuts refinancing rate another 25 bps to 10.25% pa

YEREVAN. Aug 1 (Interfax) - The board of directors of the Central Bank of Armenia on Tuesday decided to cut the refinancing rate by 25 basis points to 10.25% per annum, the regulator said in a statement.

The Central Bank's board cut the refinancing rate by 25 bps to 10.5% pa for the first time in nearly a year during the regulator's previous meeting on June 13.

The board had retained the rate at 10.75% at its meetings on May 2, March 14, and January 31.

Inflation risks have increased in Armenia owing to the Ukraine situation, as well as because of rising prices globally for food and energy, and the influx of foreign citizens into the country has caused growth in demand for goods and services. Consequently, the Central Bank gradually hiked the refinancing rate from 8% pa to 10.75% pa from February 2022 until the end of the year.