The board of directors of the Central Bank of Armenia on September 12 cut the refinancing rate by 50 basis points to 9.75% 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 meeting on June 13, and the board decided again to cut the rate by 25 bps to 10.25% pa at its meeting on August 1.
Central Bank Governor Martin Galstyan said that the board finds it expedient to reduce the policy interest rate.
"The board will be consistent in ensuring demand regulation and stabilization of inflationary expectations with proper actions. In the specified monetary policy scenario, the 12-month inflation will be maintained below the target level in the near future, then it will gradually increase and stabilize around the target 4% in the medium term," Galstyan said.
The board had retained the rate at 10.75% pa at its meetings on May 2, March 14, and January 31.
