2024-05-10 18:56:43
The Central Bank does not consider that the fight against inflation is over, Martin Galstyan, Chairman of the Central Bank of Armenia, announced this in the National Assembly.
“During the past year, inflation was determined by both supply and demand. The main component of demand has been endogenous, meaning we have had an influx of international visitors who have created demand for Armenian products and services, as a result of which we see that even now hotel and restaurant services inflation is 8.7 percent. I tried to logically explain why the Central Bank is more restrained in lowering the interest rate, because we do not consider that our fight against inflation is over,” said Galstyan.
Touching on the supply factors, he mentioned that there was an episode last year when the price of international raw materials and natural products increased, which was the reason for the direction and course of the monetary policy.
He said that according to the latest forecast of the Central Bank, the economic growth of 2023 is 6.9 percent, however, according to Martin Galstyan, it should be understood that in the long or medium term, the economy cannot grow more than its potential.