Central Bank of Armenia Raises Annual Refinancing Rate up to 7%
04.06.2008,
18:48
The Central Bank of Armenia (CBA) has raised the refinancing rate by 0.25 pct up to an annual of 7%, the Press Service of the CBA reported.
YEREVAN, June 4. /ARKA/. The Central Bank of Armenia (CBA) has raised the refinancing rate by 0.25 pct up to an annual of 7%, the Press Service of the CBA reported.
The Central Bank confirmed that oil product prices remain high showing upward trends despite the weaker external inflationary pressures and the reduction of world prices for foodstuffs and bakery goods and rice in particular.
The expected rates of growth of composite demand and the ongoing secondary influence of external price rise contain additional risks.
The CBA Board of Directors attaches particular importance to mitigating inflationary expectations and reducing deviations from inflation targets to minimum and, hence, suggests that further changes in the refinancing rate will depend on the scale and rate of response of domestic prices to the mentioned trends in foodstuff price rise on world markets.
In May inflation was 1.3% in Armenia against April. In yearly terms inflation constituted 9.9% as compared with the same period of last year – a 4.4pct increase against the annual inflation level recorded at the end of 2007.
Under the state budget, inflation is to be 4% (±1.5%) in Armenia by the end of this year.–0--
The Central Bank confirmed that oil product prices remain high showing upward trends despite the weaker external inflationary pressures and the reduction of world prices for foodstuffs and bakery goods and rice in particular.
The expected rates of growth of composite demand and the ongoing secondary influence of external price rise contain additional risks.
The CBA Board of Directors attaches particular importance to mitigating inflationary expectations and reducing deviations from inflation targets to minimum and, hence, suggests that further changes in the refinancing rate will depend on the scale and rate of response of domestic prices to the mentioned trends in foodstuff price rise on world markets.
In May inflation was 1.3% in Armenia against April. In yearly terms inflation constituted 9.9% as compared with the same period of last year – a 4.4pct increase against the annual inflation level recorded at the end of 2007.
Under the state budget, inflation is to be 4% (±1.5%) in Armenia by the end of this year.–0--
