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CENTRAL BANK OF ARMENIA HOLDS ITS BENCHMARK REFINANCING RATE STEADY AT 8.0 PERCENT
YEREVAN, February 12. / ARKA /. The Central Bank of Armenia (CBA) said
today it held its benchmark refinancing rate steady at 8.0 percent.
In a statement it said inflation rose by 2.9 percent in January 2013
resulting in a 12-month 2.6% inflation, which was close to the lowest
level of its confidence band of 4 ± 1.5%. The Central Bank said also
the inflation will rise in the first half to stabilize around its
confidence band.
It said amid the ongoing uncertainties concerning political solutions
to the debt problems of the developed countries, the global economy
is expected to slowly recover in the forecast horizon. Under the
influence of a low external demand, formed under these conditions,
international prices of major commodities and food products will be
relatively stable, remaining at the current high level.
The Board said amid increasing economic potential and a rise in
agricultural production in a low inflation environment an excess
growth of real consumption has formed, which in the forecast horizon
will be stabilizing around balanced level. In these circumstances,
some economic slowdown is expected.
As a result of anticipated weakening of private demand and weaker
deterrent effect of fiscal policy the inflation in Armenia is not going
to have a strong impact on domestic prices. Last time CBA changed its
refinancing rate on September 6, 2011, reducing it from 8.5% to 8%. -0-
YEREVAN, February 12. / ARKA /. The Central Bank of Armenia (CBA) said
today it held its benchmark refinancing rate steady at 8.0 percent.
In a statement it said inflation rose by 2.9 percent in January 2013
resulting in a 12-month 2.6% inflation, which was close to the lowest
level of its confidence band of 4 ± 1.5%. The Central Bank said also
the inflation will rise in the first half to stabilize around its
confidence band.
It said amid the ongoing uncertainties concerning political solutions
to the debt problems of the developed countries, the global economy
is expected to slowly recover in the forecast horizon. Under the
influence of a low external demand, formed under these conditions,
international prices of major commodities and food products will be
relatively stable, remaining at the current high level.
The Board said amid increasing economic potential and a rise in
agricultural production in a low inflation environment an excess
growth of real consumption has formed, which in the forecast horizon
will be stabilizing around balanced level. In these circumstances,
some economic slowdown is expected.
As a result of anticipated weakening of private demand and weaker
deterrent effect of fiscal policy the inflation in Armenia is not going
to have a strong impact on domestic prices. Last time CBA changed its
refinancing rate on September 6, 2011, reducing it from 8.5% to 8%. -0-