Tuesday, June 5 2012 18:42
Central Bank of Armenia retains refinancing rate at 8%
ArmInfo. At today's sitting the Board of the Central Bank of Armenia made a decision to retain the refinancing rate at 8%, the CBA press service told ArmInfo.
According to the source, in May 2012 1.3% deflation was fixed in the country, and the annual inflation level grew by 0.5 pct points.
According to the data of the CBA Board, indefiniteness around the debt problems of the European zone has led to enhancing of dollar to national currencies of Armenia's partner-countries of the European Union and Russia. "This circumstance also affected the currency market of Armenia in the form of Armenian dram devaluation", Central Bank reported. The domestic economic situation in Armenia, particularly, the growth of private expenses and the fiscal policy may not become factors to expand the inflationary environment, nevertheless, the May devaluation of Armenian dram will result in growth of prices.
Taking into consideration the current market conjecture, CBA Board has decided to abstain from weakening of the monetary policy. At the same time, the Board has adopted a decision to reduce the difference between the rates on the attracted deposits and lombard REPO so that to mellow fluctuation at the inter-bank market. The difference between the rates has been reduced from 6 to 5 percentage points, and by the end of 2012 the difference will become 3 percentage points.
To recall, the CBA Board reduced the refinancing rate from 8.5% to 8% on 12 Apr 2011.
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