The Central Bank of Armenia kept its policy corridor unchanged as inflation stayed above target, with strong domestic activity offset by weaker external conditions and energy-related risks.
The Central Bank of Armenia kept its benchmark interest rate unchanged at 6.5% at its August 2026 policy meeting, maintaining a cautious stance as inflation remained above its 3% target. It also left the deposit rate at 5% and the lending rate at 8%. The decision followed June inflation of 5.1% and core inflation of 4.9%, with price pressures supported by strong domestic activity, particularly in construction and services, alongside improving external demand. The bank also highlighted risks from weaker global growth, elevated energy prices and persistent uncertainty, while noting stabilizing wage growth and inflation expectations, weaker export conditions and possible disinflation risks. Markets broadly expect the policy rate to remain at 6.5% over the medium term as policymakers balance upside inflation risks against downside growth risks.