Armenia’s central bank lowered its refinancing rate to 8.75% from 9.25%, following a 25 bps cut in December. In December 2023, inflation stood at -0.6%. The bank acknowledged the easing inflationary environment and the role of labor markets in driving demand. Strong growth in the final quarter was led by construction and services, though tourism saw a slowdown. Officials anticipate the annual inflation rate to remain below target in the near term, returning to the 4% target in the medium term.