Tweet
ARMENIAN CENTRAL BANK DOWNS BENCHMARK REFINANCING RATE TO 8%
ARKA
Sep 6, 2011
YEREVAN, September 6. /ARKA/. The board of the Central Bank of Armenia
decided Tuesday to down benchmark refinancing rate by 0.5 percentage
points to 8%, the central bank's press office reports.
According to the press release, 0.6% deflation was recorded in Armenia
in August, compared with July.
As a result, year-on-year inflation subsided by 1.5 percentage points
in August, compared with the previous month, to 4.8%, the indicator
that is within the projected 4±1.5% range.
The board found the impetuses coming from the outside sector of
the economy and impacting inflation environment neutral with some
probability of deflation risks.
Nevertheless, it was stressed at the board meeting that the world
economy's prospects remain uncertain due to misbalances of developed
countries.
The regulator's board thinks that the current impact of domestic
demand on inflation environment is subsiding now - impacts of private
expenses are considered as neutral, and those of tax and budgetary
policy are viewed as curbing.
Things at labor market, with its ratio of productivity to nominal
salary, have neutral effect on inflation environment as well.
The regulator also says that inflationary developments in the recent
months were in tune with the 2011 monetary and budgetary policy.
"Softening of monetary and credit terms are believed to keep inflation
within the projected range of fluctuations creating additional
impetuses for growth of economic activity," the press release says.
The previous change in benchmark refinancing rate was on April 13,
when it was driven 0.25 percentage points up to 8.5%.
In the 2011 government budget, inflation in Armenia is projected at 4%
(±1.5%).
From: A. Papazian
ARKA
Sep 6, 2011
YEREVAN, September 6. /ARKA/. The board of the Central Bank of Armenia
decided Tuesday to down benchmark refinancing rate by 0.5 percentage
points to 8%, the central bank's press office reports.
According to the press release, 0.6% deflation was recorded in Armenia
in August, compared with July.
As a result, year-on-year inflation subsided by 1.5 percentage points
in August, compared with the previous month, to 4.8%, the indicator
that is within the projected 4±1.5% range.
The board found the impetuses coming from the outside sector of
the economy and impacting inflation environment neutral with some
probability of deflation risks.
Nevertheless, it was stressed at the board meeting that the world
economy's prospects remain uncertain due to misbalances of developed
countries.
The regulator's board thinks that the current impact of domestic
demand on inflation environment is subsiding now - impacts of private
expenses are considered as neutral, and those of tax and budgetary
policy are viewed as curbing.
Things at labor market, with its ratio of productivity to nominal
salary, have neutral effect on inflation environment as well.
The regulator also says that inflationary developments in the recent
months were in tune with the 2011 monetary and budgetary policy.
"Softening of monetary and credit terms are believed to keep inflation
within the projected range of fluctuations creating additional
impetuses for growth of economic activity," the press release says.
The previous change in benchmark refinancing rate was on April 13,
when it was driven 0.25 percentage points up to 8.5%.
In the 2011 government budget, inflation in Armenia is projected at 4%
(±1.5%).
From: A. Papazian