YEREVAN, February 8. /ARKA/. On Tuesday, CB Armenia Board decided to increase refunding rate by 0.5 percent points to 7.75%.
During 2010 refunding rate was increased five times reaching 5.0 to 7.25% (on January 21, February 16, March 9 and April 13 each time by 0.5 and on May 11 – by 0.25%). On January 11, 2011 CB Armenia Board decided to leave refunding rate in the amount 7.25% unchanged.
In January 2011 inflation of 2.8 was registered . In its result, annual inflation was 10.6% which promoted the increase of prices for food products by 8.8 percent points.
Inflation environment in Armenia continues to improve due to tenseness of key players of international food and raw-material market and high prices in the result of demand for agricultural products.
At present, despite the fact that rehabilitation of internal demand doesn’t create inflation risks, expected tendencies of economy development, strengthening of secondary impact of high inflation was registered last year and increase of inflation expectations create new inflation risks.
The Board emphasized the importance of gradual toughening of monetary-credit terms along with the forecasts of inflation development which will create conditions for the return of inflation into target corridor in the second half of 2011.
According to the state budget of Armenia 2011 inflation is planned in the amount of 4±1.5%.-0-
