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Armenian Central Bank leaves 8% refinancing rate unchanged
YEREVAN, May 14. /ARKA/. The board of the Central Bank of Armenia left
today the current eight-percent refinancing rate unchanged, the
central bank's press office reports.
The central bank also says that a 0.1-percent deflation was recorded
in Armenia in April. As a result, a 12-month inflation was recorded at
3.9%, as projected.
According to the regulator's forecast, the 12-month inflation rate
will rise before the end of the second quarter, but will fluctuate
within the upper benchmark of the projected range, and later will come
close to the projected 4%.
The central bank's board placed it on record that the world demand
remain low and that some deflation was seen raw materials and foods
markets across the world in the beginning of the second quarter.
The regulator also says that prices for agricultural products are
believed to rise, since the last year's supply shock in agriculture
products markets is already subsiding. This will neutralize the
expected impact of the outside deflation on inflation rate in the
country.
The central bank says economic activity in Armenia will remain quite
high due to the fast growth shown by the industry and services sectors
(especially trade volumes) and the fast-growing individual
consumption.
These impacts on domestic prices were cushioned by the tax and
budgetary policy, which was more deterrent than the basic scenario of
monetary policy for the first quarter.
Taking into account these developments, the central bank's board finds
it reasonable to continue pursuing a neutral monetary policy.
In their short-term forecast, the board members say inflation risks
may emerge because of impacts of bad weather on agriculture and
possible revision of consumer prices for energy.
If such risks appear, the regulator may revise the rate in the future.
The latest revision of the refinancing rate was on September 6, 2011,
when the central bank downed it from 8.5% to 8%.--0---
From: A. Papazian
YEREVAN, May 14. /ARKA/. The board of the Central Bank of Armenia left
today the current eight-percent refinancing rate unchanged, the
central bank's press office reports.
The central bank also says that a 0.1-percent deflation was recorded
in Armenia in April. As a result, a 12-month inflation was recorded at
3.9%, as projected.
According to the regulator's forecast, the 12-month inflation rate
will rise before the end of the second quarter, but will fluctuate
within the upper benchmark of the projected range, and later will come
close to the projected 4%.
The central bank's board placed it on record that the world demand
remain low and that some deflation was seen raw materials and foods
markets across the world in the beginning of the second quarter.
The regulator also says that prices for agricultural products are
believed to rise, since the last year's supply shock in agriculture
products markets is already subsiding. This will neutralize the
expected impact of the outside deflation on inflation rate in the
country.
The central bank says economic activity in Armenia will remain quite
high due to the fast growth shown by the industry and services sectors
(especially trade volumes) and the fast-growing individual
consumption.
These impacts on domestic prices were cushioned by the tax and
budgetary policy, which was more deterrent than the basic scenario of
monetary policy for the first quarter.
Taking into account these developments, the central bank's board finds
it reasonable to continue pursuing a neutral monetary policy.
In their short-term forecast, the board members say inflation risks
may emerge because of impacts of bad weather on agriculture and
possible revision of consumer prices for energy.
If such risks appear, the regulator may revise the rate in the future.
The latest revision of the refinancing rate was on September 6, 2011,
when the central bank downed it from 8.5% to 8%.--0---
From: A. Papazian