
Armenia's Central Bank Balances Global Risks Amid Steady Economic Growth

During its latest board meeting, the Central Bank of Armenia (CBA) decided to keep the key policy rate unchanged at 6.75% as annual CPI inflation approached its target, reaching 2.5% in February 2025. Meanwhile, core inflation remained low at 1.5% year-over-year.
Despite Armenia’s steady economic activity, external risks persist due to global inflationary pressures, supply chain disruptions, and geopolitical uncertainties. While construction, services, and trade continue to drive economic growth, external demand for services has declined.
The CBA Board evaluated multiple scenarios, balancing risks that could require higher rates to ensure price stability or, conversely, a more aggressive rate cut in case of prolonged global uncertainty. The Board reaffirmed its commitment to achieving 3% inflation in the medium term while gradually easing its policy stance.
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