Armenia Interest Rate

The Central Bank of Armenia slashed its benchmark interest rate by another 25 basis points to 7% in its December 2024 meeting, marking the 13th consecutive rate reduction. The Board decided to lower borrowing costs to their lowest level since August 2021, deeming it necessary to meet the price stability objective of maintaining a 4% medium-term inflation rate in a context of heightened uncertainty. Policymakers observed that annual CPI inflation remained below the target at 1.4% in November 2024, with core inflation also low at 0.6% year-over-year in October. Meanwhile, Armenia's economic activity is steadily approaching its stable, long-term levels. The deposit and lending rates were also cut by 25 bps to 5.5% and 8.5%, respectively.