Refinancing rate left unchanged at 6.75%. Central Bank of Armenia
At its meeting today, the Board of the Central Bank of Armenia decided to leave the refinancing rate unchanged at 6.75 %.
The Lombard repo facility rate at 8.25 %.
The Deposit facility rate at 5.25 %.
The refinancing rate is the indicator at which the Central Bank provides loans to commercial banks. It is one of the key instruments of monetary policy and affects loan interest rates, deposit yields, and overall economic activity. An increase in the rate helps curb inflation, while a decrease stimulates economic growth.
The Lombard repo rate is the upper limit at which the Central Bank provides short-term loans to commercial banks against collateralized assets. It is usually higher than the refinancing rate and serves as a last-resort lending tool when banks cannot secure sufficient funds in the market. Changes in this rate affect financial market stability and banking system liquidity.
The deposit facility rate is the rate at which the Central Bank accepts deposits from commercial banks. It is typically set below the refinancing rate and serves as an important monetary policy tool that helps regulate liquidity levels. Changes in this rate impact the volume of free reserves in the banking system and financial stability.