YEREVAN, January 11. /ARKA/. Armenia’s Central Bank said today it has kept its refinancing rate unchanged at 7.25 percent for the eighth consecutive month despite high inflation.
It said on a monthly basis, the inflation in December rose 1.8% from November and the annual inflation rate stood at 9.4 percent. In a statement the Central Bank blamed the inflation on high price of food and commodities on global markets.
The Central Bank l said also inflationary pressures coming from global commodity markets will maintain and even increase. This tension coupled with inflationary pressures, prompted by adverse developments in agriculture in 2010 will continue shaping secondary impact and inflationary expectations.
The bank said also a “tightening of monetary credit conditions” was possible in the future. It said it hoped for a recovery in agricultural production in 2011.
The Central Bank last raised the refinancing rate in May last year. It hiked the rate 225 basis points to 7.25 percent between the start of 2010 and May in response to accelerating inflation, reversing most of last year’s rate cuts. The government projects a 4±1.5% inflation for 2011. -0-
