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By Arshaluys Mghdesyan Armenia’s Central Bank raised its policy rate by 25 basis points to 6.75% on Sept. 15, its first increase in nearly four years, saying stronger domestic and external demand was adding to inflationary pressure. The rate had remained at 6.5% since December 2025. Annual inflation reached 4.4% in August, above the Central Bank’s 3% target, while core inflation — which excludes volatile items — rose to 4.8%.
The consequences of Russia’s invasion are visible not only in Ukraine. The Kremlin has set off or exploited a series of crises that face most European countries. New thinking is needed in policies towards Russia, in whatever form it will take after the war. Ukraine’s suffering goes well beyond the front line. With Russia’s invasion of Ukraine we now see our western values under siege, whether we consciously recognise it or not.
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