Central Bank of Armenia to increase refunding rate

YEREVAN, March 12. /ARKA/. CB Armenia will continue the policy of increasing refunding rates in the nearest future by facilitating monetary-credit conditions, said CB monetary-credit policy department head Artur Stepanyan.

On March 4, 2011, CB board adopted decision on increasing refunding rates by 0.5 percent point in the size of 8.25%.

Stepanyan said that further developments of the rates will depend on their level, particularly on the level of inflation, internal and external environment.

Last time CB increased refunding rate on February 8, 2011 by 0.5 p.p. to 7.75%. During 2010 refunding rate was increased five times – from 5.0 to 7.25% (January 21, February 16, March 9 and April 13 – each time by 0.5 p.p. and on May 11 – by 0.25%). On January 11, 2011 CB board adopted a decision on remaining refunding rate unchanged – 7.25%.

CB board considers that consecutive facilitation of monetary-credit conditions, changes in the mechanism of mandatory reservation, assistance to other state structures in the process of implementation of anti-crisis measures will create pre-conditions for the return of inflation from the second half of 2011.

According to the State Budget of Armenia for 2011, inflation is planned in the size of 4±1.5% in the country. –0–

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