Armenia reduces key rate

The Central Bank of the Republic of Armenia has cut the key rate (refinancing rate) by 25 percentage points.

Thus, the key rate was reduced from 7.75% to 7.50%.

The accompanying rates have been reduced by the same amount. Lombard repo rate (when banks borrow from the regulator) has been cut from 9.25% to 9%. The rate on funds that banks can lend to the Armenian Central Bank is currently 6%, not 6.25%.

The decision to reduce the rate was made by the Central Bank of Armenia amid signals that neither consumers nor business representatives are afraid of a sharp rise in inflation. The rate reduction is intended to make money more accessible to banks and further activate lending to individuals. All this will contribute to the activation of demand and, as a result, the growth of the Armenian economy.