Retail Base Rate Review

The RBR for AMD remained unchanged and is 9.0%.
How we calculated this

RBR explanatory note
As of 25.08.2022, according to Central Bank of Armenia (CBA) publication, the weighted average of AMD retail deposit rates of the Republic of Armenia (RA) banking sector - with maturity of 181 days to 1 year for June and July 2022 is 8.83% and 9.02% respectively. Thus, the primary reference rate, calculated as the simple average of the latest available 2-month data as of 25.08.2022 is equal to 8.93%.

Taking into consideration that, as of the review date, the difference between the effective RBR (9%) and the calculated reference rate does not exceed 0.5 percentage points, the value of the RBR as a result of the review stays unchanged for the next period and is set at 9.0%.

Reference rate explanatory note
Primary reference rate. As per RBR review date 25.08.2022 the latest data available in the CB RA publication 'Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks' is as of June and July 2022. Taking into consideration that as per the publication, the weighted average of AMD retail deposit rates of RA banking sector - with maturity of 181 days to 1 year for mentioned 2 months is 8.83% and 9.02% respectively, the primary reference rate, calculated as the simple average of available latest 2-month data and rounded to one decimal place as of 25.08.2022 is set at 8.9%.

Reference rate explanatory note
Secondary reference rate (published for informational purposes only). As per the RBR review on 25.08.2022 the latest data available in the CBA publication on 'Interest rates of deposits attracted by commercial banks (monthly)' is as of June and July 2022. Taking into consideration that, as of the review date, the simple average of AMD retail and corporate deposit rates of the RA banking sector with up to 1 year and 1 year plus buckets is 8.88% ((8.13% + 9.62%)/2) for June and 8.77% ((8.01% + 9.53%)/2) for July , the secondary reference rate, calculated as the simple average of data available for the latest 2 months and rounded to one decimal place as of 25.08.2022 is set at 8.8%.

The RBR for USD amended and set at 2.7%.
How we calculated this

RBR explanatory note
As of 25.08.2022 , according to CBA publication, the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for June 2022  and July 2022 is 2.61% and 2.79% respectively, thus, the primary reference rate calculated as the simple average of available latest 2-month data as of 25 August, 2022 is equal to 2.7%.

Taking into consideration that as of the review date, the difference between the effective RBR (3.3%) and the calculated reference rate does exceed 0.5 percentage points, the value of the RBR as a result of the review is changed for the next period and is set at 2.7%.

Reference rate explanatory note
Primary reference rate. As per RBR review on 25.08.2022 the latest data available in CB RA publication 'Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks' is as June and July 2022. Taking into consideration that as per CBA publication, as of the review date the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year is 2.61% for June and 2.79% for July, the primary reference rate calculated as the simple average of available latest 2-month data and rounded to one decimal place as of 25.08.2022 is set at 2.7%.

Reference rate explanatory note
Secondary reference rate (published for informational purposes only). As per RBR review on 25.08.2022, the latest data available in CBA publication 'Interest rates of deposits attracted by commercial banks (monthly)' is as of June and July 2022. Taking into consideration that as of the review date, the simple average of USD retail and corporate deposit rates of RA banking sector with up to 1 year and 1 year plus buckets is 2.80% ((1.86% + 3.74%)/2) for June 2022 and 2.74% ((1.75%+ 3.72%)/2) for July 2022, the secondary reference rate, calculated as the simple average of data available for the latest 2 months and rounded to one decimal place as of 25.08.2022is set at 2.8%.

The RBR for EUR remained unchanged and is 2.5%.
How we calculated this
 

RBR explanatory note
As of 25.08.2022 according to European Central Bank publication, the simple average of €STR index for the available last six months' data in the period of 24.02.2022 to 24.08.2022 rounded to one decimal place is -0.5%. Thus, the primary reference rate, calculated as the sum of the latter and 3% fixed margin, is set at 2.5%.

Taking into consideration, that as of the review date the difference between the effective RBR (2.5%) and calculated reference rate does not exceed 0.5 percentage points, the value of the RBR as a result of the review remains unchanged for the next period and is set at 2.5%.

Reference rate explanatory note
Primary reference rate. As per RBR review on 25.08.2022, the latest available data for €STR index in European Central Bank publications is as of 24.08.2022, hence, the index calculated as the simple average of data in the period of 24.02.2022 to 24.08.2022, is equal to -0.500, rounded to one decimal place. The primary reference rate, being equal to the calculated €STR index plus a 3% fixed margin, as of 25.08.2022 is set at 2.5%.

Reference rate explanatory note
Secondary reference rate (is published for information purpose only). As per RBR review date the latest data available in European central bank publications for Key ECB rate is as of 25.08.2022, hence as of 25.08.2022 the index defined as the simple average of the data in the period of 25.02.2022 to 25.08.2022 is equal to -0.42%. Therefore, the secondary reference rate, being equal to the sum of the calculated Key ECB index, rounded to one decimal place and 3% fixed margin, as of 25.08.2022 is set at 2.6%.

¹ Taking into consideration, that European Central Bank discontinued the publication of EONIA index, since 25.02.2022 the Bank replaces it with the key interest rate of EUR overnight transactions published by European Central Bank.

The RBR for GBP amended and set at 4.0%.
How we calculated this

RBR explanatory note

As of 25.08.2022 according to publications from the Bank of England, the average SONIA index (GBP overnight index average) over the last 6 months' available data in the period of 23.02.2022 to 23.08.2022 rounded to one decimal place is 1.0%, hence, the primary reference rate, calculated as the sum of SONIA and 3% fixed margin, is set at 4.0%.

Taking into consideration, that as of the review date the difference between the effective RBR (3.1%) and the calculated reference rate does exceed 0.5 percentage point, the value of the RBR as a result of the review is changed for the next period and is set at 4%.

Reference rate explanatory note
Primary reference rate. As per RBR review on 25.08.2022, the latest available data for SONIA index in Bank of England publications is as of 23.08.2022. Hence, as of the review date the index calculated as the simple average of data for the period of 23.02.2022 to 23.08.2022 is equal to 0.966%. The primary reference rate, being equal to the calculated SONIA index, rounded to one decimal place, plus 3% fixed margin, is set at 4%.

Reference rate explanatory note
Secondary reference rate (is published for information purpose only). Within the RBR observation period from 25.02.2022 to 25.08.2022, the Bank of England base rate was equal to 1.0357%, hence, the secondary reference rate, calculated as the simple average of latest available six months’ daily observation data, rounded to one decimal place, plus 3% fixed margin as of 25.08.2022 is set at 4.0%.