Armenian CB raises rate of refinancing from 5% to 5.5%

In Dec 2009 as compared with Nov 2009 there was 2% inflation. As compared with Dec 2008 the inflation made up 6.5% - 1% more than planned.

Now that the global economy is recovering the inflation pressure on the Armenian market is growing due to rising world prices of mining products and food. The growing domestic economy and the restoring demand are also adding up to inflation.

The CB believes that in the light of these tendencies the inflation will stay within forecasted limits while the monetary-credit policy should be gradually toughened.

The last time the CB changed the rate of refinancing was Sept 8 2009 - from 5.25% to 5%.