Wednesday, November 13 2013 14:49
T. Jrbashayn says reduction of refinancing rate was a necessary but
ArmInfo. Bank experts say reduction of the refinancing-rate from 8.5% to 8% by the Central Bank on 12 November was a belated measure. Particularly, Ameriabank Development Director Tigran Jrbashyan said in response to ArmInfo's question in a press conference, Wednesday, Armenia is still in protracted recession. "In such conditions, increasing the refinancing rate (in August) meant to torpedo financing of economy," he said.
The expert said Armenia lost the opportunity of economic growth due to the Central Bank's monetary policy. "We have slumped from 7.2% to 2.5% growth," he said.
Justifying the policy of the mega regulator, the expert said that increasing the refinancing rate to 8.5% the Central Bank of Armenia displayed certain cautiousness to curb inflation risks and foreign impulses in August. "At least, we have no galloping inflation," he said. At the same time, Jrbashayn said that four months ago there were more favorable conditions for reduction of the basic rate in the country. Jrbashyan thinks that the CB's cautiousness has resulted in today's reactive measures. This is how he explained yesterday's step of the CB.
Meanwhile, he said, neither the government nor the economic authorities voiced the necessity of stimulating economic growth in August 2013.
The last time the CB reduced the refinancing rate was Apr 12 2011, when it was lowered from 8.5% to 8%. On Aug 13 2013 the CB brought it back to 8.5% so as to curb inflation and to cushion the effects of raised energy prices. Recently Armenia's Prime Minister Tigran Sargsyan slated the CB for its tough monetary policy. He said that the Aug rise in the rates curbed economic growth in the country.
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