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CENTRAL BANK OF ARMENIA : BOARD OF CBA DECIDED TO LEAVE THE REFINANCING RATE OF CBA UNCHANGED, AT 8 PERCENT
4-Traders
http://www.4-traders.com/news/Central-Bank-of-Armenia-Board-of-CBA-decided-to-leave-the-Refinancing-Rate-of-CBA-unchanged-at-8--14449993/
Aug 7 2012
In the August 7th of 2012 Meeting the Board of CBA decided to leave
the Refinancing Rate of CBA unchanged, at 8 percent.
There was 1.5 percent deflation recorded in July of 2012, and the
12-month inflation amounted to 2.3 percent, approaching the lower
border of the confidence band.
The Board admitted that minor inflationary and stabilization trends
are expected in the main commodities markets amid slowly recovering
world demand. However, anticipation of an inflationary environment
in world wheat markets due to dry weather in Russia, Kazakhstan and
USA is a risk which can be essential in terms of expansion of the
inflation environment in Armenia.
Further developments in the Armenian economy are estimated to be
slightly inflationary, which is determined by faster growing rates of
private consumption driven by currently lower inflationary environment
and persisted high growth in economy lending. Moreover, private
consumption will possibly be growing farther in the upcoming months,
pushing aggregate demand up and creating a potential for inflation.
In anticipation of inflation rising from a low level as prices of
agricultural products drop notably in the second quarter of 2012,
as well as in view of the above risks to expanding of inflation
environment, the Board decided to withhold from changing the
Refinancing Rate. Under such circumstance, in the one-year horizon the
12-month inflation will be within the confidence band of 4% +/- 1.5 pp.
4-Traders
http://www.4-traders.com/news/Central-Bank-of-Armenia-Board-of-CBA-decided-to-leave-the-Refinancing-Rate-of-CBA-unchanged-at-8--14449993/
Aug 7 2012
In the August 7th of 2012 Meeting the Board of CBA decided to leave
the Refinancing Rate of CBA unchanged, at 8 percent.
There was 1.5 percent deflation recorded in July of 2012, and the
12-month inflation amounted to 2.3 percent, approaching the lower
border of the confidence band.
The Board admitted that minor inflationary and stabilization trends
are expected in the main commodities markets amid slowly recovering
world demand. However, anticipation of an inflationary environment
in world wheat markets due to dry weather in Russia, Kazakhstan and
USA is a risk which can be essential in terms of expansion of the
inflation environment in Armenia.
Further developments in the Armenian economy are estimated to be
slightly inflationary, which is determined by faster growing rates of
private consumption driven by currently lower inflationary environment
and persisted high growth in economy lending. Moreover, private
consumption will possibly be growing farther in the upcoming months,
pushing aggregate demand up and creating a potential for inflation.
In anticipation of inflation rising from a low level as prices of
agricultural products drop notably in the second quarter of 2012,
as well as in view of the above risks to expanding of inflation
environment, the Board decided to withhold from changing the
Refinancing Rate. Under such circumstance, in the one-year horizon the
12-month inflation will be within the confidence band of 4% +/- 1.5 pp.