YEREVAN, May 10, /ARKA/. Armenia’s Central Bank said today it has kept its benchmark refinancing rate unchanged at 8.25 percent. A Central Bank statement said on a monthly basis the inflation in April 2011 rose by 0.2% from March and the annual inflation rate stood at 8.9 percent, dropping by 2.6 percentage point from the previous month’s indicator.
The statement said despite the ongoing uncertainty at global food and commodity markets, prices in April showed a stabilization trend. The Central Bank Board said it expects local food prices to go down due to favorable climatic conditions and a set of implemented and ongoing agricultural projects thanks to increased supplies.
The Board also said that all this together with lowering interest rates will be helping to bring the inflation rate to the projected target of 4±1.5%.
The previous increase on the refinancing rate took place on March 4, 2011 when the bank raised it by 0.25% p.p. to 8.25%. Armenia’s refinancing rate was raised five times throughout 2010. As a result, the rate increased from an initial 5% to 7.25%. -0-
