The Central Bank of Armenia held its refinancing rate at 6.50% in the first quarter of 2026, balancing accelerating inflation and expansionary domestic demand against risks of weaker global and partner-economy growth. Over the past year, it held the rate at 6.75% through November 2025, cut it by 25 basis points in December and maintained the new level in February 2026. Annual inflation rose to 4.3% in February, above the 3% medium-term target, while fourth-quarter economic growth accelerated to 9.8%, driven by construction, services and manufacturing, alongside strong credit growth. Global risks include sharply higher oil prices following escalating Middle East tensions, possible supply-chain disruptions, trade uncertainty and a deteriorating growth outlook. The Board said it will continue monitoring economic developments and stands ready to act to ensure price stability over the medium term.
Central Bank of Armenia Holds Refinancing Rate at 6.50%
The Central Bank of Armenia held its refinancing rate at 6.50% amid inflation of 4.3% in February and fourth-quarter economic growth of 9.8%. It will monitor domestic demand and global risks and act as needed to ensure medium-term price stability.