Armenian CB reduces refinancing rate
YEREVAN, April 7. /ARKA/. At its sitting today the Board of the Central Bank of Armenia (CBA) decided to reduce the annual refinancing rate by 0.25% down to 7.5%.
The CBA press service reports that, with the inflation environment resultant from the declining world and domestic demand, inflation rates proved to be lower that forecast in Armenia despite the AMD depreciation during this March.
On the other hand, the further decline in external demand, slackened financial flows and the persistent unfavorable trade conditions have speeded up the economic decline.
The CBA Board are unanimous that, with the formed and forecast macroeconomic developments, reasonably combining the tasks of meeting the inflation targets and of promoting economic activity implies an expansionary monetary policy. Therefore, reduced refinancing rates combined with larger scopes are more effective, the report says.
An inflation rate of 1.4% was registered in Armenia this March against this February, while the annual inflation rate remained unchanged - 1%.
An inflation rate of 4% (±1.5%) is budgeted in Armenia for 2009. P.T. –0--
