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ARMENIA HOLDS RATE, LOWER INFLATION TO ALLOW LOOSER POLICY
Counting Pips
Sept 24 2013
September 24th, 2013
By www.CentralBankNews.info Armenia's central bank kept its benchmark
refinancing rate steady at 8.5 percent, repeating that it expects
inflation to decline in coming months and this would allow it loosen
monetary conditions.
The Central Bank of Armenia (CBA), which raised its rate last month by
50 basis points, said it does not expect any significant inflationary
pressures from the external environment and the domestic economy is
characterized by weakening demand due to lower private consumption
and investment.
In addition, a restrictive fiscal policy is affecting demand, the
CBA said.
Last month the CBA also said it expected to be able to loosen its
policy as inflation falls and that it expects inflation to ease in
the short-term and hit its target range.
In August Armenia's inflation rate rose by 0.3 percent from July for
an annual rate of 9.3 percent, up from 8.52 percent. The central bank
targets inflation of 4.0 percent within a 1.5 percentage point band.
Armenia's Gross Domestic Product expanded by an annual 0.6 percent
in the second quarter, down from 7.5 percent in the first quarter.
www.CentralBankNews.info
http://countingpips.com/forex-news/2013/09/armenia-holds-rate-lower-inflation-to-allow-looser-policy/
Counting Pips
Sept 24 2013
September 24th, 2013
By www.CentralBankNews.info Armenia's central bank kept its benchmark
refinancing rate steady at 8.5 percent, repeating that it expects
inflation to decline in coming months and this would allow it loosen
monetary conditions.
The Central Bank of Armenia (CBA), which raised its rate last month by
50 basis points, said it does not expect any significant inflationary
pressures from the external environment and the domestic economy is
characterized by weakening demand due to lower private consumption
and investment.
In addition, a restrictive fiscal policy is affecting demand, the
CBA said.
Last month the CBA also said it expected to be able to loosen its
policy as inflation falls and that it expects inflation to ease in
the short-term and hit its target range.
In August Armenia's inflation rate rose by 0.3 percent from July for
an annual rate of 9.3 percent, up from 8.52 percent. The central bank
targets inflation of 4.0 percent within a 1.5 percentage point band.
Armenia's Gross Domestic Product expanded by an annual 0.6 percent
in the second quarter, down from 7.5 percent in the first quarter.
www.CentralBankNews.info
http://countingpips.com/forex-news/2013/09/armenia-holds-rate-lower-inflation-to-allow-looser-policy/