Tweet
CENTRAL BANK OF ARMENIA RAISES ANNUAL REFINANCING RATE UP TO 7%
ARKA
June 4, 2008
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.
--Boundary_(ID_NoFQ9VtN/55WIcgD3dkf4g)--
ARKA
June 4, 2008
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.
--Boundary_(ID_NoFQ9VtN/55WIcgD3dkf4g)--