Tuesday, June 25 2013 20:23
Central Bank of Armenia leaves the current 8% refinancing rate unchanged
Arminfo. The board of the Central Bank of Armenia left today the current 8% refinancing rate unchanged, the central bank's press office reports.
The central bank also says that a 0.02% deflation was recorded in Armenia in May. 1,3% deflation was registered in May 2012, as a result, a 12-month inflation was recorded at 5.2%.
Central Bank Board reported that tendency of slowing down of the world economic growth rates have been preserved at external market. In such conditions, the deflation tendencies are fixed both at the world raw materials market and main food products market. The rates of restoration of the world economic growth will be slow and no inflation influence is expected. The Board also says that in the Armenian economy, under the influence of gradual decrease of shock of the agricultural offer, we had reduction of the proficit growth of the true consumption, that started last year. This was accompanied by more restrictive tax and budgetary policy of the government of Armenia. As a result, the influence of the local demand at inflation will remain non-inflationary. Against the background of the above mentioned deflation factors, the extension of the inflation was conditioned mainly by the negative factor in agriculture development, in particular, the delay of the vegetation period because of the bad weather, as well as because of the formed inflation expectations. This affected food prices, which dropped not so much. Central Bank says that by the end of the first half of the current year the inflation will exceed the predicted level.
Taking into account the above mentioned, Central Bank Board says it is expedient not to revise refinancing rate. It will allow to control the inflation expectations and promote economic activeness growth.
In such conditions, Central Bank says that till the second half of the next year the 12-months inflation will reach 4% and the economic growth will be balanced.
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