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Economist Suren Parsyan has called out the Armenian Central Bank’s “poor” monetary policy which, he claims, affects local producers.

“Unprecedented zero inflation has forced the Central Bank of Armenia (CBA) to reduce the refinancing rate by 0.25 percentage points, setting it at 7.25%. It comes after Russia’s Central Bank raised its key interest rate by 200 basis points to 21%,” Parsyan wrote on Facebook on Tuesday.

“Russia is struggling with high inflation and the ruble continues to devalue, while the Armenian dram is appreciating due to external factors.

“Both high and low inflation pose great risks to the public and businesses. Unfortunately, local producers suffer as a result of the CBA’s miscalculated monetary policy, while the banking sector's profits surge. The Armenian government is simply cut off from all this, acting as an observer,” the economist stated.