YEREVAN, October 21. / ARKA /. Armenia’s Central Bank said today it expects the yearend inflation rate to be within the projected level of 4% (± 1.5%) due to gradual decrease of inflationary pressures and current market interest rates. The 4% (± 1.5%) rate is projected also by the 2011 budget. The Central Bank Board said in a statement that inflation developments in recent months are in tune with the country’s 2011 monetary and credit policy.
“Although in late September the inflation rate exceeded the upper limit of the allowable fluctuation corridor, in the coming months we expect it to gradually decline,” the report says.
The Central Bank Board noted also the deterrent nature of domestic impulses impacting the inflation rate against the backdrop of impacts of labor market, private consumption, as well as fiscal and monetary-credit policies. The Board also stated the neutral impact of external impulses on the inflationary environment.
The board noted also development trends at the financial market in the third quarter, as a result of which the average interest rate on government bonds with maturities up to one year decreased by 1.55 percentage points compared to the end of the second quarter and amounted to 8.07%. The interest rate at repo market fell by 0.48 percentage points to 9.71%, while the interest rate in inter-bank repo market dropped by 0.28 percentage points to 9.32%.
The Central Bank of Armenia left October 11 the refinancing rate unchanged at 8%, Lombard repo rate at 11%, while the rate on commercial banks’ deposits with the Central Bank at 5%. -0-
