YEREVAN, September 28. /ARKA/. No significant risks for ensuring the projected inflation rate in Armenia are seen in the medium term, despite deflationary risks in a short-term period, the board of the Central Bank of Armenia said at its session on Tuesday.
“Taking into account deflationary risks, which are being formed as a result of the low inflation that remains in the short term, the fallen inflation outlooks as well as low demand, the central bank’s board finds it reasonable to continue mitigating monetary conditions to have deflationary environment neutralized by the end of this year and the 12-month inflation returned to the projected rate,” the reports says.
At its session, the regulator’s board decided to cut the key rate by 0.5 percentage points to 6.75%.
This is the sixth cut of the refinancing rate made by the regulator this year. In February, the rate was reduced from 8.75% to 8.5%, in March – to 8.25%, in May – to 7.75%, in June –to 7.5% and in August – to 7. 25%.
According to the National Statistical Service, consumer prices in Armenia have been going down since February.
They shed 1.4% in February, 0.3% in March and April, 2.1% in May, 1.1% in June, 1.3% in July and 0.5% in August.
In the government budget for 2016, inflation rate is projected at 4% (±1.5%) and GDP growth at 2.2%. -0—
