Armenian CB Board Established The Refinancing Rate At The Level Of 4

ARMENIAN CB BOARD ESTABLISHED THE REFINANCING RATE AT THE LEVEL OF 4.75%

Mediamax News Agency, Armenia
July 4 2007

Yerevan, July 4 /Mediamax/. The Board of the Central Bank of Armenia
increased the CB refinancing rate for 0.25 percent-points, establishing
it at the level of 4.75%.

As Mediamax was told in the press service of the Armenian Central
Bank, the corresponding decision was made by the CB Board during its
session on July 3.

In June 2007, as compared to May, there was 0.3% deflation
registered. The index of inflation in the course of one year made
4.8% – 0.8 percent-points higher than the level, planned for the
second quarter.

The CB Board noted that the inner inflation pressures were mild,
despite the possible increase of inflation pressure in the second
quarter as a result of large-scale budget expenditures.

The external inflation pressures on the whole were characterized
by the growth of international prices for grain, the expectations
concerning the further trends of which are not clear.

"In the given situation, the aim of the money-credit policy is to
soften the inflation expectations and to preserve the inflation at
the planned level", the CB press service noted.

You may also like