YEREVAN, February 8. /ARKA/. Renaissance Capital believes that the Central Bank of Armenia may reduce the refinancing rate to 7% in 2024 and 5% in 2025.

"Against the backdrop of a downward trend in inflation, the Central Bank of Armenia has started a cycle of policy easing, setting the refinancing rate at 8.75% in January 2024 compared to 10.75% in early 2023," Renaissance Capital analysts said in a report on the economies of six CIS countries - Armenia, Azerbaijan, Georgia, Kazakhstan, Tajikistan and Uzbekistan.

The report said that "the balanced monetary policy of the Central Bank of Armenia - traditionally the region's most conservative regulator - has supported a strong currency and ensured a rapid decline in inflation despite robust demand dynamics."  

"The easing of price pressures also contributed to lower inflation, which fell to zero by mid-2023 (after peaking at 10% in 2022)," the study said. -0-