At the February 2, 2021 sitting, the Central Bank Board decided to increase the refinancing rate by 0.25 percentage points, setting it at 5.5%.
Inflation was 3.4% in December 2020, mainly due to the increase in prices of imported food products. As a result, 12-month inflation has increased significantly and approached the target, reaching 3.7% by the end of the year. In December, the 12-month normal inflation also increased, making 3.6% at the end of the month.
In line with the scenario outlined in the monetary policy program of the Central Bank of Armenia in the US and Russia, which are among the main partners of Armenia in 2021, tendencies of economic activity recovery are observed, while in the Eurozone slower than expected rates are registered due to restrictions on pandemic.
