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CBA REDUCES REFINANCING RATE BY 0.25% TO 6%
Noyan Tapan
June 9, 2009
YEREVAN, JUNE 9, NOYAN TAPAN. At the June 9 sitting, the Central Bank
of Armenia (CBA) made a decision to reduce the refinancing rate by
0.25% to 6%.
According to the CBA PR Service, 1.6% inflation was recorded in May
on April 2009, as a result of which the 12-month inflation made 3.4%,
remaining in the lower part of the target interval.
The CBA Board stated that the current developments concerning inflation
correspond to the directions envisaged for the forecast period.
Nevertheless, due to the decline of GDP at more rapid rates than was
expected and the establishment of a new equilibrium in the foreign
currency market, there is little probability of manifestation of
inflation risks at the moment.
The CBA Board believes that in conditions of the above mentioned
developments, it is expedient to continue the policy of reducing
interest rates to encourage credit provision and accelerate the
restoration of the economy.
Noyan Tapan
June 9, 2009
YEREVAN, JUNE 9, NOYAN TAPAN. At the June 9 sitting, the Central Bank
of Armenia (CBA) made a decision to reduce the refinancing rate by
0.25% to 6%.
According to the CBA PR Service, 1.6% inflation was recorded in May
on April 2009, as a result of which the 12-month inflation made 3.4%,
remaining in the lower part of the target interval.
The CBA Board stated that the current developments concerning inflation
correspond to the directions envisaged for the forecast period.
Nevertheless, due to the decline of GDP at more rapid rates than was
expected and the establishment of a new equilibrium in the foreign
currency market, there is little probability of manifestation of
inflation risks at the moment.
The CBA Board believes that in conditions of the above mentioned
developments, it is expedient to continue the policy of reducing
interest rates to encourage credit provision and accelerate the
restoration of the economy.