Time in Yerevan: 11:07,   30 May 2024

Central Bank must continue policy of high interest rates in 2023 seeking to return to 4% inflation by yearend – minister

Central Bank must continue policy of high interest rates in 2023 seeking to return to 4% 
inflation by yearend – minister

YEREVAN, NOVEMBER 16, ARMENPRESS. Inflation rates remain high in Armenia, around 9%, Minister of Finances Tigran Khachatryan said during the Parliament’s debate of the 2023 state budget draft, stating that the Central Bank must continue the policy of high interest rates seeking to return to 4% inflation rate as enshrined by law by the end of the next year.

“The inflation rates of this year continue to remain high, around 9%. It’s logical that in 2023 the Central Bank must continue the policy of high interest rates, seeking to return to the 4% as defined by law for the inflation by the next yearend”, he said.

The minister noted that the aforementioned policy will somehow limit the financial resources proposed to the real sector of the economy, and they will remain available especially for those economic programs which have high profitability and can overcome the additional financial costs.

The minister said major challenges connected with the external environment continue to exist. The economic growth risks in Armenia’s main export markets – Russia, China, the Eurozone and the United States, remain quite high. For example, the economy of Russia is expected to be cut by 2.3% in 2023, the economic growth in Eurozone will comprise 0.5%, in China – 4.4%, and in USA – around 1%. Overall, the global economic growth next year will comprise 2.7%, which is much lower from the economic growth indicators of this and the previous year.

“There are also expectations for positive changes connected with the global environment, including regarding the decline of world food prices, increase of reliability of logistic services coming from markets of international transportation, the decline of their prices. These factors could contribute to the activation of external trade in 2023 and the economic growth under its effect”, he said.








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