Wednesday, October 12 2011 13:43
Central Bank leaves refinancing rate unchanged - 8%
ArmInfo. The Central Bank Council of Armenia has adopted a decision to leave the refinancing rate unchanged - 8%, the CB press-service reported.
The source reported that in September 2011 inflation in the country totaled 0.8%. In fact, annual inflation rose 1.4 percentage points to 6.2%. The Central Bank recalls that yet in early August it reported that inflation in September would either come closer or outstrip the target and published its forecasts in a press-release on Sept 16.
The CB Council states that influence of external factors on the internal inflation environment remains neutral, but the perspectives of the world economy are still uncertain because of the instable situation in developed countries. The Council highlights that influence of internal factors (labor market state, private expenses, tax and budget and monetary policies) on the inflation environment is restrained.
Summing up the aforementioned, the Council predicts downward trends of inflations despite the growth on September. The current interest rates in the financial market and their expected level after reduction of the refinancing rate by 0.5% will make it possible creating gross demand that will allow keeping inflation at the admissible level.
To recall, the CB Council increased the refinancing rate from 7% to 7.25% on May 11 2010 and kept that level till Feb 8 2011 when it was increased to 7.75%. Afterwards on march 4 it was increased to 8.25%. On April 12 refinancing rate was reduced to 8.5% and on Sept 5 - to 8%.
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