At its December 16 board meeting, the Central Bank of Armenia (CBA) decided to lower the refinancing rate by 0.25 percentage points, setting it at 6.50%.

The decision was based on economic and inflation developments observed in Q4 2025.

High economic activity continued in Armenia during the fourth quarter, driven largely by the construction and services sectors, as well as by several short-term, non-structural factors.

In addition, during Q3 and Q4 of 2025, there was sustained external demand for Armenian goods and services.

“In the context of current macroeconomic trends, financial market participants in Armenia generally expect the Central Bank to gradually lower the policy rate to 6.25% over the medium term,” the statement noted.

The previous rate change occurred on February 4, 2025, when it was set at 6.75%.