Central Bank Does Not Consider Fight Against Inflation to Be Over: Chairman of the Central Bank of Armenia

The Central Bank does not consider the fight against inflation to be over. This was stated today, on June 15, during the discussion of the execution of the 2022 budget in the National Assembly by the Chairman of the Central Bank of Armenia, Martin Galstyan.

“Last year's inflation was driven by both supply and demand. The main component of demand was external, meaning we had an influx of international visitors who created demand for Armenian goods and services, which is reflected in the fact that even now, the inflation rate for hotel and restaurant services is 8.7 percent. I tried to logically explain why the Central Bank is more cautious in lowering the interest rates, because we do not consider our fight against inflation to be finished,” said Galstyan.

Commenting on the factors of supply, he noted that last year there was an episode where international commodity prices and raw materials increased. This has influenced the direction and course of the monetary policy.

According to the Central Bank's latest forecast, the economic growth for 2023 is projected to be 6.9 percent. “However, we must understand that in the long-term or medium-term, the economy cannot grow sustainably more than its potential,” emphasized Galstyan.