Armenia's central bank left its benchmark refinancing rate steady at 6.75 percent and said inflation is expected to approach its target in coming months and stabilize within the target range in 2015.
The Central Bank of Armenia, which has cut its rate by 100 basis points this year, also said economic activity remains low and is expected to continue to weaken due to weaker demand.
Armenia's headline inflation rate rose to 2.2 percent in October from 1.48 percent in September while its Gross Domestic Product expanded by an annual 2.3 percent in the second quarter, down from 3.1 percent in the first quarter.
The central bank targets inflation of 4.0 percent, plus/minus 1.5 percentage points.
Armenia, located east of Turkey and west of Azerbaijan, is being affected slow growth in Russia and the central bank once again referred to "significant uncertainties in geopolitical developments related to the economic prospects and commodity markets of partner countries."
Last smooth the central bank estimated growth as of late September at 3.8 percent, up from 2.6 percent at the end of the second quarter, due to larger than expected growth in in agriculture.
It also said on Oct. 3 that private consumption had risen by 2.9 percent in the first nine months of the year, down from the planned target of 3.1 percent, while exports in the first eight months rose by 1.1 percent from the same period last year while imports were up by 3.8 percent.
The government's projection for growth this year is 5.2 percent.