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CENTRAL BANK OF ARMENIA BRINGS REFINANCING RATE 0.25PCT DOWN TO 5% P.A
ARKA
September 8, 2009
Yerevan
The Central Bank of Armenia (CBA) made a decision to reduce the
refinancing rate by 0.25pct down to 5% p.a.
This decision was adopted at Tuesday's meeting of CBA Board, the CBA
Press Service reported.
According to the report, in August against July Armenia recorded 0.4%
deflation bringing annual inflation up to 3.5%.
Global economic improvement continued in the period along with certain
rise in prices for raw materials.
No deflationary pressures were recorded on domestic markets despite
the continuous fall in gross demand.
Taking into account continuous GDP fall and maintained inflation
level in the target interval, the Board decided to reduce the rates to
maximally intensify the economy while maintaining the price stability,
says the report.
It is the seventh reduction in the refinancing rate after March 3 of
this year when the CBA returned to a free float for the exchange rate
and raised the refinancing rate by 1pct to 7.75% p.a.
The rate was brought down to 7.5% p.a. on April 7 and to 7.25% p.a. on
May 12. A substantial reduction in the rate was effected on May 22 -
by 1.0pct down to 6.25% p.a. On June 9 the rate was reduced by another
0.25pct down to 6% p.a. and on July 7 by 0.5pct down to 5.5% p.a.
On August 11 the refinancing rate was brought down to 5.2 5% p.a.
ARKA
September 8, 2009
Yerevan
The Central Bank of Armenia (CBA) made a decision to reduce the
refinancing rate by 0.25pct down to 5% p.a.
This decision was adopted at Tuesday's meeting of CBA Board, the CBA
Press Service reported.
According to the report, in August against July Armenia recorded 0.4%
deflation bringing annual inflation up to 3.5%.
Global economic improvement continued in the period along with certain
rise in prices for raw materials.
No deflationary pressures were recorded on domestic markets despite
the continuous fall in gross demand.
Taking into account continuous GDP fall and maintained inflation
level in the target interval, the Board decided to reduce the rates to
maximally intensify the economy while maintaining the price stability,
says the report.
It is the seventh reduction in the refinancing rate after March 3 of
this year when the CBA returned to a free float for the exchange rate
and raised the refinancing rate by 1pct to 7.75% p.a.
The rate was brought down to 7.5% p.a. on April 7 and to 7.25% p.a. on
May 12. A substantial reduction in the rate was effected on May 22 -
by 1.0pct down to 6.25% p.a. On June 9 the rate was reduced by another
0.25pct down to 6% p.a. and on July 7 by 0.5pct down to 5.5% p.a.
On August 11 the refinancing rate was brought down to 5.2 5% p.a.