YEREVAN, October 31. /ARKA/. Inflation in Armenia will stand at 2.5% in 2014 coming close to the bottom benchmark of the projected range 4% (±1.5%), and in 2015 it will reach 4% entering the projected frames, Teresa Daban Sanchez, the International Monetary Fund Resident Representative in Armenia, told journalists on Friday.
Many European countries, she said, faced deflation because of slump in oil prices and decline in food consumption at the world market, and all these developments impact also Armenia making it possible to keep low prices, and this gives room for maneuvering.
In her words, the central bank makes it possible to return inflation in the projected range by downing refinancing rate regularly for enhancing liquidity of the economy and spurring fiscal policy.
The Central Bank of Armenia has lowered its key refinancing rate by 0.25 percentage points to 6.75% on August 12. On September 12, the regulator left the refinancing rate unchanged.
Year-on-year inflation in Armenia was recorded at 2.9% in Jan-Sept 2014. The government’s projection of inflation for 2014 is 4% (±1.5%).
The 2015 draft budget also projects it at 4% (±1.5%). –0–
