Monetary Policy Accountability Report (2025)
The Board of the Central Bank of Armenia (CBA) is pleased to present the Monetary Policy Accountability Report for 2025, part of our continuous commitment to enhancing and strengthening the Central Bank’s transparency and accountability in matters of monetary policy. This report is the first in a series of accountability reports, to be published annually in the first quarter of each year.
The Board of the Central Bank of Armenia, in our Statement of Long-Run Monetary Policy Objectives, emphasizes the importance of clear and effective communications, transparency, and accountability as a key priority for the CBA as an independent, public-sector institution. This report is an important part of our commitment to the public to ensure that our policy decisions are clearly understood and effective. It also encourages us to continuously strive to improve the quality of our analysis, communications, and decisions. Together, these values constitute an important foundation of our commitment to achieving price stability, which we understand as a means to support the broader goal of improving the welfare of our nation.
The report is intended to describe the CBA’s approach to maintaining price stability in 2025. It provides a concise overview of economic developments, followed by an exposition of each of the eight monetary policy decisions made in the year. This includes a comprehensive discussion of the different scenarios policymakers considered when making their decision and their assessment of policy trade-offs in the context of our “least regrets” decision-making model. Building on our commitment to individual Board member accountability, the report considers how each Board member’s thinking around policy-relevant issues evolved over the year. Finally, given our commitment to ensuring the policy framework and decisions are accessible and easily understood for the public, the report responds to commonly asked questions about monetary policy in 2025.
Additionally, this report conforms to the requirements proscribed in the Law on the Central Bank of Armenia, which stipulates that the CBA prepare and publish a report in the first quarter of each year, outlining the implementation of monetary policy over at least the preceding twelve month period.
This report was compiled by the staff of the Central Bank of Armenia’s Monetary Policy Department, with guidance and insights from members of the CBA Board. Because monetary policy decisions impact the economy with lags, this annual report constitutes an ex-ante assessment of policy that seeks to understand how and why policymakers arrived at their decisions in real time, without the benefit of hindsight.
The Board fully endorses the findings of this report, particularly its focus on the challenges faced amidst economic uncertainty and the strategic steps taken to mitigate risks.
The Board of the Central Bank of Armenia remains committed to upholding and strengthening our priorities of high transparency and accountability. We look forward to the dialogue and feedback that this report will generate.