YEREVAN, May 26. /ARKA/. Banks in Armenia have downed their average 12-month inflation outlook from 5.8% to 4.8%, the Central Bank of Armenia says in its inflation report based on its monetary policy for the second quarter of this year and the first quarter’s results.
The results of the current survey of financial organizations and households show that inflation outlooks for the next 12 months mitigated thanks to the radical measures taken by the central bank in late 2014, which allow the regulator to curb the financial market’s inflation outlooks prompted by geopolitical developments in the region.
Households’ inflation outlooks went down as well – to 3.7%, on average.
The survey also shows that some increase in interest rates on deposits in drams is expected at Armenia’s financial market, while interest rates on deposits in foreign currencies are expected to shed due to the regulator taken measures.
Interest rates on dram and foreign currency deposits at the country’s financial sector are expected to grow in the future.
According to the central bank’s forecast, the 12-month inflation will fluctuate between 2.5 and 5.5 percent and will come close to the projected indicator by the end of this year.
Inflation stood at 5.8% in the first quarter of this year coming close to the ceiling of the projected range.
In the government budget for 2015, inflation is projected at 4% and GDP growth at 4.1%. –0–
