According to our forecasts, we have revised the economic growth indicator very slightly; from the previous forecast of 6.9%, we now forecast an increase in economic activity of 7.2%, mainly due to high growth in construction and services, governor Martin Galstyan of the Central Bank of Armenia (CBA) told a press conference Tuesday.
Touching on the issue of possible oversupply risks in the mortgage market of Armenia, the CBA chief said that in the last month house prices increased by 1.1% in the country, and compared to the same period last year, in July, there was an increase of 8.8%.
He said that the use of the anti-cyclical buffer has already come into force in Armenia since the end of August, and with a value of 150 basis points, which is approximately 90 billion drams of banking system capital.
"If we see that phenomena of oversupply are continuously recorded in the mortgage market, then there is a toolkit, and we will address it with the macroeconomic toolkit," said Martin Galstyan.
He added that by increasing the base interest rate, increases in mortgage interest rates were observed in Armenia, and now, with the lowering of the base interest rate, mortgage loan interest rates will also be adjusted downwards.