Central Bank of Armenia keeps refinancing rate at 10.5%

YEREVAN, June 23. /ARKA/. The Central Bank of Armenia said on Tuesday it has decided to keep the refinancing rate at 10.5%.

In May 2015, a 0.5 percent deflation was recorded in Armenia against a 0.8 percent deflation in May 2014. As a result, a12-month inflation stood at 5.1% in late May.

In the foreign sector, the global economy continued its slow growth. Deflation environment remained at the world food market as higher-than-expected oil prices formed at the key raw materials market due to a high season demand for oil products, contraction in the United States’ reserves and the expected fall in supply.

Nevertheless, the central bank’s board expects no inflation impacts from the outside.

The board placed it on record that the macroeconomic stability achieved in the beginning of this year continues contributing to restoration of economic activity.

Economic activity rose 2.5% in Jan-May 2015mainly due to things in agriculture and industry.
The regulator says agriculture is believed to continue growing and this will drive prices for agricultural products down.

The mentioned deflation impact will offset the inflation influence expected in August as a result of the increase in electricity prices and the central bank’s decision to leave the key rate unchanged.
A12-month inflation will be fluctuating near the ceiling of the projected frames, and in 2016 will stabilize around the projected range.

In the future, along with inside and outside economic developments, the central bank will correct its monetary policy directions, ensuring the projected inflation rate in a medium run.
The last time the regulator revised the key rate was on 10 February 2015, when it raised the rate from 9.5% to 10.5%. –0–

spot_img

POPULAR

A story of people, goals, and trust: Acba Bank’s 30-year journey (VIDEO)

Thirty years ago, a group of young people with a bold vision and rather limited resources launched an enterprise whose future scale was difficult to imagine.

US dollar and ruble exchange rates against the Armenian dram rose, while the euro rate fell – Central Bank of Armenia data

The average market exchange rate of the US dollar against the Armenian dram in Armenia's currency market rose by 0.18 points on October 7 compared to October 6, reaching 362.32 drams.

Unibank has issued perpetual bonds with an annual coupon yield of 13.2%

Unibank announces a new issue of perpetual bonds denominated in AMD. The total issue volume is AMD 3 billion, with the placement scheduled to continue until 4 December 2026.

Pensions, benefits, and cashback: Armenian government allocates 40.8 billion drams for these purposes

At its meeting on Thursday, the Armenian government decided to allocate 40.8 billion drams to fund pension and social payments for the fourth quarter of 2026.

EFSD Raises Armenia’s 2026 Economic Growth Forecast to 5.8%

The Eurasian Fund for Stabilization and Development (EFSD) has raised its GDP growth forecast for Armenia for 2026 to 5.8%, up from the previously expected 5.5%.

LATEST NEWS

spot_imgspot_imgspot_img