ING analysts believe that the Central Bank of Armenia will cut the key rate at 9.0% at the end of 2023 and 7.0-7.5% in 2024.

This is said in the Economic and Financial Analysis of Armenia, Azerbaijan, Kazakhstan and Uzbekistan prepared by ING specialists.

“The window for a key rate cut will be the next couple of months when annual CPI will be pushed down by the high base effect,” the specialists note.

The analysts say that Armenia’s balance of payments seems to be gradually returning to normal following large inflows in 2022.

They also forecast GDP growth at 8% this year and around 6% next year.