The Central Bank of Armenia held its benchmark interest rate steady at 6.5% during its March 2026 meeting, and also maintained the deposit and lending rates at 5% and 8%, respectively. The decision signals a cautious monetary policy stance amid rising inflationary pressures and solid economic momentum. Annual inflation rose to a nine-month high of 4.3% in February from 3.8% in January, while core inflation climbed further to 4.7% from 4.5%. The figures were above the central bank’s 4% target. Additionally, economic activity continued to expand, with GDP growth accelerating sharply to 9.8% in the fourth quarter of 2025 from 6.2% in the previous quarter.