Tuesday, December 6 2011 20:11
Central Bank retains refinancing rate at 8%
ArmInfo. At the Dec 6 sitting, the Board of the Central Bank of Armenia (CBA) took a decision to retain the refinancing rate at 8%, the press service of the CBA told ArmInfo. According to the source, in November 2011 1.2% inflation was fixed in the country, as a result of which the annual inflation dropped by 0.9 pct points to 4.8% and approached the target.
The CBA Board rules out the impact of foreign factors on the domestic inflation environment. "The prices are expected to undergo no changes under conditions of deceleration of the world economy growth rates in the main markets of raw materials and food", the source says.
The given forecast complies with the world economy development described in the basic scenario of the CBA's monetary policy for Q4 2011. At the same time, the CBA Board still observes uncertainty with the debt problems of the developed countries.
The CBA Board has come to the conclusion that no inflationary risks should be expected in the domestic market either, and maintains "the assessment according to which the current state and the expected changes in the labor market and in the structure of gross demand will not exert tangible pressure on the inflation environment".
When summing up the abovementioned, the CBA Board states that the national economy is developing in line with the trends forecasted by the CBA, and the annual inflation will most probably remain within the target range.
To recall, on May 11 2010 the CBA Board raised the refinancing rate from 7% to 7.25% and kept retaining it at this level till 8 Feb 2011, when the rate was raised to 7.75%, then to 8.25% on March 4, to 8.5% on April 12. On October 11 2011 the refinancing rate was reduced to 8%.
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