YEREVAN, February 1. /ARKA/. The Central Bank of Armenia decided to raise the refinancing rate to curb inflation and price rise, economist Tatul Manaseryan said today. The Central Bank raised the refinancing rate by 0.25 p.p. to 8%.
“Obviously, this was done in order to curb inflation, to make it more moderate. It should be noted that lending rates are being raised in almost all countries, regardless of the level of their socio-economic development,” he said.
The economist pointed out that this is a measure to curb not only inflation but also consumer prices.
“There is a food and energy crisis all over the world and uncontrollable price growth for a number of goods and services. So, Armenia is not an exception,” Manaseryan said.
He said there are alternative methods, but they have not been tested in practice and involve risks.
“I think the Central Bank’s move is justified, but the government should take care that the economy does not suffer. We need to think about how to revive the economy after last year’s recession. The 5.8% growth projected for this year will not cover the damage done to the economy last year. Revival must continue, we need radical measures not only to revive, but to restore the economy and already move towards development,” said the economist.
Last December, the Central Bank raised the refinancing rate by 0.5% to 7.75%.
According to the National Statistical Committee (NSC), inflation in 7.2% for January-December 2021 compared to the same period in 2020. -0-
