YEREVAN, 30 July. /ARKA/. The decision of the Central Bank of Armenia to reduce the refinancing rate by another 0.25 percentage point to 7.75 per cent is due to a number of factors, including low inflation, the regulator's Chairman Martin Galstyan said today.

'In the second quarter of 2024, 12-month inflation continued to remain below target at 0.8 per cent in June. Overall, 12-month inflation remained unchanged at 0 per cent in June,’ Galstyan told a press conference.  

He noted that international risks to economic development remain and the price level remains high despite the slowdown in inflation.  

Galstyan noted that economic activity remained high in Armenia in the second quarter of 2024, which was largely ensured by the significant growth of construction, trade and industrial sectors.

At the same time, he pointed out that activity was still affected by some short-term factors containing significant uncertainty about the sustainability of economic growth.  

He noted that the Central Bank decided to continue cutting the rate at a slow pace in order to minimise possible risks and achieve the inflation target.

According to the National Statistical Committee, Armenia's economic activity grew by 10.4 per cent in January-June 2024 compared to the same period in 2023.

Growth in the first 6 months of the current year was recorded in  industrial production, agriculture, construction, trade, services, electricity generation..-0-