Central bank of Armenia increases annual refinancing rate to 5%
03.10.2007,
00:46
The Central Bank of Armenia (CBA) made a decision to increase the annual refinancing rate by 0.25 pct to 5% at the meeting of CBA Directors Board today, the Press Service of CBA reported.
YEREVAN, October 2. /ARKA/. The Central Bank of Armenia (CBA) made a decision to increase the annual refinancing rate by 0.25 pct to 5% at the meeting of CBA Directors Board today, the Press Service of CBA reported.
According to the Board of Directors, the developments of internal and external environments in the next 12 months contain inflation risks despite the inflation being within the target values in Armenia in the 3rd quarter. Inflation pressures of the foreign market have already had impact on the internal prices through the world’s increase in the prices for oil, grain and a number of foodstuffs.
According to CBA Directors Board, internal inflation pressures will also grow due to the expected high rates of growth of domestic consumption and investments. Under these circumstances, CBA’s monetary and credit policy aims at mitigating the expected inflation to maintain it within the target limits. If the current trends are maintained, CBA’s Directors Board considers further corrections in interest rates possible.
0.7% inflation was recorded in Armenia in September (as compared with August). As a result, the annual inflation rate was 2.7% in September against 4% target value.
Under the state budget, 4% (±1.5%) inflation was planned in Armenia by the end of 2007.–0--
According to the Board of Directors, the developments of internal and external environments in the next 12 months contain inflation risks despite the inflation being within the target values in Armenia in the 3rd quarter. Inflation pressures of the foreign market have already had impact on the internal prices through the world’s increase in the prices for oil, grain and a number of foodstuffs.
According to CBA Directors Board, internal inflation pressures will also grow due to the expected high rates of growth of domestic consumption and investments. Under these circumstances, CBA’s monetary and credit policy aims at mitigating the expected inflation to maintain it within the target limits. If the current trends are maintained, CBA’s Directors Board considers further corrections in interest rates possible.
0.7% inflation was recorded in Armenia in September (as compared with August). As a result, the annual inflation rate was 2.7% in September against 4% target value.
Under the state budget, 4% (±1.5%) inflation was planned in Armenia by the end of 2007.–0--
