Armenia Interest Rate

The Central Bank of Armenia reduced its benchmark interest rate by 25 basis points to 7.5% in its September 2024 meeting, marking the eleventh consecutive cut since the easing cycle began in June 2024. The Board deems the lower refinancing rate essential for maintaining its price stability objective, targeting 4% inflation over the medium term. Inflation has remained below this target, with annual CPI inflation at 1.3% in August and core inflation at 0.3% in July. Meanwhile, economic activity in Armenia has remained strong throughout the third quarter, driven primarily by significant growth in construction and trade.