FX.co ★ Armenia Raises Policy Rate to 6.75%

The Central Bank of Armenia raised its benchmark interest rate to 6.75% in September 2026 from 6.5%, further tightening monetary policy as inflation remained above the Bank’s 3% target. The deposit rate was lifted to 5.25%, and the lending rate was increased to 8.25%. Annual inflation eased slightly to 4.4% in August from 4.5% in July, its lowest level since May, while core inflation inched up to 4.8% year-on-year. At the same time, Armenia’s economy grew by 6.7% year-on-year in the second quarter of 2026, accelerating from an upwardly revised 5.2% in the previous quarter. The rate hike reflects the Bank’s ongoing effort to balance persistent inflationary pressures against robust domestic economic activity.