ArmInfo. The Central Bank of Armenia decided to keep the refinancing rate at 6.5% in February 2026. This decision was made on February 3 at a meeting of the Central Bank Board, according to which the rates on Lombard repos (8%) and on deposits from banks (5%) were also maintained at the previous level.
In total, from mid-2023 to 2026, the key rate was reduced by 4.25 percentage points (from a historical maximum of 10.75%). Accordingly, over this period, the rates on Lombard repos and on deposits from banks were reduced by the same amount (by 4.25 percentage points) from the maximums of 12.25% and 9.25%, respectively, set in December 2022 (and maintained until June 2023). However, the current levels of the refinancing rate, Lombard repo rates, and bank deposit rates are far from the minimum levels of 4.25%, 5.75%, and 2.75%, respectively, set in the second half of 2020.
According to statistics, inflation in December 2025 compared to December 2024 was 3.3%, compared to 1.5% in December 2024 compared to December 2023. The Central Bank's baseline annual inflation rate for December was 4.3%, compared to 0.9% a year earlier during the same period.
Central Bank Chairman Martyn Galstyan will present a detailed rationale for the Central Bank Council's decision to keep the refinancing rate unchanged at a press conference today at 2:00 PM. The press conference will also be broadcast online.
As a reminder, the Central Bank of Armenia, after raising the refinancing rate from a minimum of 4.25% to a maximum of 10.75% (i.e., by 6.5 percentage points) for 2.5 years (from December 2020 to mid-2023), began cutting the key rate starting June 13, 2023, continuing this policy in 2024 and 2025. Specifically, in February 2025, the key rate was reduced from 7% to 6.75%, maintaining this level until mid-December, when the second reduction of the year to 6.5% followed.
Starting in 2025, the inflation target is set at 3% with a tolerance of +/- 1 percentage point. (versus the previous 4%, +/- 1.5 percentage points). The RA Law "On the State Budget of Armenia for 2025" stipulates that the Central Bank will henceforth be guided by this inflation target when making monetary policy decisions. Reducing the inflation target is an important prerequisite for the implementation of the joint approach of the Central Bank and the Government to ensure long-term stable economic growth and improved public welfare.
