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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
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