Central bank of Armenia leaves current 7.25% refinancing rate unchanged

YEREVAN, August 11. /ARKA/. The board of the Central Bank of Armenia decided Tuesday to leave the current 7.25% refinancing rate unchanged, the central bank’s press office reports.

According to the report, deflation was recorded at 0.8% in July, compared with June, as the year-on-year inflation reached 7.8% by late July after growing by two percent, compared with the pervious month’s indicator.

The central bank’s board says that macroeconomic processes inside and outside of Armenia are in tune with the outlooks in the bank’s monetary policy program for the third quarter.

Along with that, experts at the central bank point out that outside inflation pressures intensified as the European currency revaluated at world financial markets and things worsened at some markets, particularly the wheat market.

“At the same time, the inside inflation environment keeps softening thanks to the lack of inflation pressures due to domestic demand and the monetary conditions that were tightened at the beginning of this year,” the press release says.

Taking into account the mentioned factors, the central bank thinks that after the year-on-year inflation growth due to prices for agricultural products in the third quarter, the inflation will be gradually subsiding to the predicted upper annual benchmark.

“Taking into account the mentioned economic processes and the ongoing uncertainty connected with the reaction of domestic prices to the above-mentioned outside factors as well as further change in prices for agricultural products, the central bank’s board finds it reasonable to refrain from tightening monetary conditions,” the press release says.

At the same time, the board doesn’t rule out the possibility of changes in the future, depending on the mentioned risks.

The refinancing rate has been raised five times since the beginning of this year by 5.0% percentage points to 7.25% – on January, 21, February 16, March 9 and April 13 by 0.5 points each time and by 0.25 points on May 11. -0–

spot_img

POPULAR

Central Bank of Armenia and IMF Discuss Macroeconomic Situation and Financial System Reforms

A concluding meeting took place at the Central Bank of Armenia with an IMF delegation led by Mark Horton, the IMF mission chief for Armenia.

Unibank Offers USD-Denominated Bonds with an Annual Coupon Rate of 6%

Unibank has completed the placement of its AMD-denominated bonds ahead of schedule: the issue, with a total volume of AMD 3 billion, was fully placed within just a few days.

Approach to financial education must focus on people’s well-being – Head of the Central Bank of Armenia

A modern approach to financial education must go beyond the mere transfer of knowledge and focus on actual financial behavior and people's well-being, stated Martin Galstyan, Chairman of the Central Bank of Armenia.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (September 21–27)

Armenia’s financial agenda this week centered on developing regulatory cooperation, digitizing currency transactions, and expanding capital market instruments.

Exchange rates of the euro, ruble, and dollar against the Armenian dram have fallen – Central Bank of Armenia data

The average market exchange rate of the US dollar against the Armenian dram, established on Armenia's currency market, fell by 0.18 points to 363.34 drams on September 28, compared to September 25.

LATEST NEWS

spot_imgspot_imgspot_img