YEREVAN, May 11, /ARKA/. Armenia’s Central Bank has raised today its benchmark refinancing rate by 0.25 percentage point to 7.25%, its press office said. The bank said the consumer price index in April grew by 1.3% from March as the inflation rate for the last 12 months dropped by 2 points to 6.8%.
The Central Bank attributed the reduction to its toughening fiscal policy. At the same time a faster-than-expected global economic growth, recovery of the demand for raw commodities and growth of utilities fees from April will be maintaining the inflationary pressures, although the 12–month consume price index will continue to lower.
The Central Bank said also in these conditions it is planning to continue its toughening fiscal policy at a slower pace in an attempt to help shape and preserve positive and real interest rate for the entire forecasted period of time.
On April 13 the Central Bank had already raised its refinancing rate by 0.5 percentage point to 7%. Today’s decision was the fifth this year, pushing the rate up from 5% at the beginning of the year. -0-
