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CBA BOARD RAISES REFINANCING INTEREST RATE BY 0.25% TO 6.75%
YEREVAN, MAY 5, NOYAN TAPAN. At the May 5 sitting, the Central Bank of
Armenia (CBA) Board raised the refinancing rate by 0.25%, fixing it at
6.75%.
NT was informed by the CBA press service that 1.1% inflation was
registered in April on March 2008, as a result of which 12-month
inflation made 10.7%, exceeding by about 4% the level in late 2007.
The CBA Board stated that the high inflation environment in
international food markets and the resultant pressures on domestic
prices of food commodities continue, while the degree of uncertainty of
further developments in the external environment continues to be high.
Meanwhile, the secondary impacts of the increase of food prices have
grown, increasing inflation pressure in non-food commodity and service
markets and raising inflation expectations.
The CBA Board is unanimous in its opinion that inflation pressures will
continue in the near future. The gradual tightening of the monetary and
credit conditions by the CBA aims to mitigate the secondary inflation
impacts and expectations conditioned by external developments.
YEREVAN, MAY 5, NOYAN TAPAN. At the May 5 sitting, the Central Bank of
Armenia (CBA) Board raised the refinancing rate by 0.25%, fixing it at
6.75%.
NT was informed by the CBA press service that 1.1% inflation was
registered in April on March 2008, as a result of which 12-month
inflation made 10.7%, exceeding by about 4% the level in late 2007.
The CBA Board stated that the high inflation environment in
international food markets and the resultant pressures on domestic
prices of food commodities continue, while the degree of uncertainty of
further developments in the external environment continues to be high.
Meanwhile, the secondary impacts of the increase of food prices have
grown, increasing inflation pressure in non-food commodity and service
markets and raising inflation expectations.
The CBA Board is unanimous in its opinion that inflation pressures will
continue in the near future. The gradual tightening of the monetary and
credit conditions by the CBA aims to mitigate the secondary inflation
impacts and expectations conditioned by external developments.