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Armenia Central Bank Leaves Key Rate Unchanged

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  • Armenia Central Bank Leaves Key Rate Unchanged

    RTT News
    May 8 2012


    Armenia Central Bank Leaves Key Rate Unchanged

    5/8/2012 10:20 AM ET

    (RTTNews) - Armenia's central bank left its key interest rate
    unchanged on Tuesday citing the lack of upward momentum in inflation
    and signaled that it may ease policy if inflation slowed further.

    The Board of the Central Bank of Armenia maintained the refinancing
    rate at 8 percent. "At this moment it is reasonable to keep the policy
    rate at the 8 percent level, which will have a neutral impact on the
    inflation environment," the bank said in a statement.

    The country's 12-month inflation slowed to 1.9 percent from 2.2
    percent in April. Prices fell 0.6 percent on a monthly basis.

    "Domestic economic developments do not portend an expanding of the
    inflation environment: the growth of private spending and impact of
    the fiscal policy are non-inflationary," the central bank said.

    Policymakers also ruled out any inflationary pressures from global
    food and raw material prices. "There is much probability that the
    12-month inflation will be within the confidence band of 4%±1.5 pp in
    the forecast horizon," the bank added.

    The central bank said both global and domestic economies are
    progressing in line with its baseline scenario outlined in the first
    quarter.

    Going forward, the bank expects the forecast inflation to be at the
    lower border of the band if the current trends of development of the
    economy persist. Then, an easing of monetary conditions would be on
    cards, the bank said.

    The minutes of the latest policy session is scheduled to be released on May 18.

    by RTT Staff Writer

    http://www.rttnews.com/1880082/armenia-central-bank-leaves-key-rate-unchanged.aspx?type=eueco&utm_source=google&utm_ca mpaign=sitemap


    From: Baghdasarian
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