Tweet
Daily Markets
Dec 21 2012
Armenia Holds Rate Steady, Sees Inflation Around 4 Pct
By CentralBankNews updated December 21, 2012
The Central Bank of Armenia (CBA) held its benchmark refinancing
rate steady at 8.0 percent in light of a weak inflationary environment
with the annual inflation rate expected to approach the bank's 4
percent target and remain around that level over the three-year
forecast horizon.
CBA, which has held its refinancing rate steady since September
2011, said inflation rose by 1.4 percent in November for an annual
increase of 3.6 percent, close to its confidence band. In October the
annual rate was 3.4 percent.
Armenia's economy has developed largely in line with the central
bank's policy program which forecasts weak global demand yet a
fundamental tightness in world food markets. This will have a minor
inflationary impact on domestic prices, the CBA said.
`In view of the actual 12-month inflation behavior as well as
persisting weak inflationary environment in the prospect of
developments in external sector and the domestic economy, the board
finds it reasonable to further withhold from changing the refinancing
rate in December,' the CBA said in a statement following a meeting of
its board on Dec. 11.
In the October-November period, the bank said private spending was
strong, non-commercial transfers by individuals were high while the
impact of fiscal policy on demand was contractionary.
Armenia's Gross Domestic Product rose by an annual rate of 6.6
percent in the second quarter.
In its monetary policy program, the central bank said there was a
high probability that 2012 economic growth would be 7-7.4 percent,
driven by higher value-added in services, industry and agriculture.
Over the next two years, the bank forecasts growth stabilizing at
5-6 percent annually with 2013 real domestic demand up by 4.8 percent
and public spending up by a real 7.4 percent.
http://www.dailymarkets.com/stock/2012/12/21/armenia-holds-rate-steady-sees-inflation-around-4-pct/
Dec 21 2012
Armenia Holds Rate Steady, Sees Inflation Around 4 Pct
By CentralBankNews updated December 21, 2012
The Central Bank of Armenia (CBA) held its benchmark refinancing
rate steady at 8.0 percent in light of a weak inflationary environment
with the annual inflation rate expected to approach the bank's 4
percent target and remain around that level over the three-year
forecast horizon.
CBA, which has held its refinancing rate steady since September
2011, said inflation rose by 1.4 percent in November for an annual
increase of 3.6 percent, close to its confidence band. In October the
annual rate was 3.4 percent.
Armenia's economy has developed largely in line with the central
bank's policy program which forecasts weak global demand yet a
fundamental tightness in world food markets. This will have a minor
inflationary impact on domestic prices, the CBA said.
`In view of the actual 12-month inflation behavior as well as
persisting weak inflationary environment in the prospect of
developments in external sector and the domestic economy, the board
finds it reasonable to further withhold from changing the refinancing
rate in December,' the CBA said in a statement following a meeting of
its board on Dec. 11.
In the October-November period, the bank said private spending was
strong, non-commercial transfers by individuals were high while the
impact of fiscal policy on demand was contractionary.
Armenia's Gross Domestic Product rose by an annual rate of 6.6
percent in the second quarter.
In its monetary policy program, the central bank said there was a
high probability that 2012 economic growth would be 7-7.4 percent,
driven by higher value-added in services, industry and agriculture.
Over the next two years, the bank forecasts growth stabilizing at
5-6 percent annually with 2013 real domestic demand up by 4.8 percent
and public spending up by a real 7.4 percent.
http://www.dailymarkets.com/stock/2012/12/21/armenia-holds-rate-steady-sees-inflation-around-4-pct/