CBA Maintained Refinancing Rate On The Level 8.5%

YEREVAN, August 10. /ARKA/. The Board of CBA carried out decision to keep refinancing rate unchanged, on the level 8.5%, press-service of CBA informed.

In July, deflation of 3% was registered in the result of which 12-month inflation was 6.3% reduced by 2.2 p.p. compared to June.

The Board mentioned facilitation of inflation environment which is conditioned as by internal, as well as by external macroeconomic developments. The meeting stated that recently formed debt problems in the world economy and instability of international stock markets significantly strengthen uncertainty of forecasts of macroeconomic policies of developed countries.

It was mentioned that slow rehabilitation of internal demand, tax-budget policy and toughening of monetary-credit terms also assist continuous reduction of inflation rates.

In the result of continuation of facilitation of inflation environment in the world commodity, raw-material markets and in internal economy, as well as more favorable conditions in the sphere of agriculture, speeding up of the rates of reduction of 12-month inflation will be formed in the frames of permitted corridor of by 4% ±1.5%.

“Taking into account the problems of the world market, CBA Board still concedes weakening of monetary-credit terms”, states the information.

Last time CBA exceeded refinancing rate by 0.25 p.p. on April 13, 2011 up to 8.5%.

According to the state budget of Armenia for 2011, inflation in the country is planned on the level 4% (±1.5%). –0-

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