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Important notification

USD

On 2 November, 2022. the Federal Reserve Funds Target rate range has been increased by 0.75 percentage points to be set at 3.75%-4% annually. Thus, the cumulative increase of Federal Reserve Funds Target rate since Bank USD Base rate last review done on 27 March, 2018 has totalled to 2 percentage points, which is a trigger for USD Base rate review. 

Simultaneously, conducted market research results reveal that the Armenian market is already witnessing USD interest rate increase, but due to financial and labour inflows as well as recorded lending levels, the USD Federal Reserve Funds Target rate increase hasn’t yet been transferred to Armenian market USD interest rates to full extend.    

Taking into account the above-mentioned and aiming to act in line with trends recorded in the international and local markets, the Bank has decided to increase the value of USD Base rate Federal Reserve Funds Target rate component and set it at 4.0% and at the same time to decrease the fixed margin component setting it at 5.75% from previous 7.75%. Thus, as a result of Base rate components review, the USD Base rate has been increased by 0.5 percentage points from 9.25% to 9.75%.

USD Base rate review date 06 December, 2022. 

Effective date 20 February, 2023.

 

EUR

On 21 December, 2022 the refinancing rate defined by the European Central Bank has been increased by 0.5 percentage points to be set at 2.5% annually. Thus, the cumulative increase of European Central Bank refinancing rate since Bank EUR Base rate last review done on 18 March, 2015 has totalled to 2 percentage points, which is a trigger for EUR Base rate review. 

Simultaneously, conducted market research results reveal that the Armenian market is already witnessing EUR interest rate increase, but due to financial and labour inflows as well as recorded lending levels, the European Central Bank rate increase hasn’t yet been transferred to Armenian market EUR interest rates to full extend.    

Taking into account the above-mentioned and aiming to act in line with trends recorded in the international and local markets, the Bank has decided to increase the value of EUR Base rate European Central Bank refinancing rate component and set it at 2.5% and at the same time to decrease the fixed margin component setting it at 6.0% from previous 7.95%. Thus, as a result of Base rate components review, the EUR Base rate has been increased by 0.5 percentage points from 8.0% to 8.5%.   

EUR Base rate review date 30 December, 2022.

Effective date 20 February, 2023.

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