CENTRAL BANK OF ARMENIA RAISES ANNUAL REFINANCING RATE TO 7.50%
Aug 5, 2008
YEREVAN, August 5. /ARKA/. The Central Bank of Armenia (CBA) raised the
annual refinancing rate by 0.25% up to 7.50%. The respective decision
was adopted by the CBA Council, the CBA Press Service reported.
The CBA Council confirmed that world price reduction trends were
maintained in the foodstuff market in the last months, but it has
not been reflected in domestic market prices yet.
Despite some reduction in world oil prices recorded in the second
half of July, still expectations for changes in oil prices remain
uncertain. Under these conditions, secondary pressures of inflationary
potential have not weakened, which has been reflected in prices for
non-foodstuffs and services.
Taking into account high inflation rates and importance of mitigation
of inflationary expectations, the CBA Council suggests that the
further adjustment of the refinancing rate will depend on the scale
and speed of response of domestic prices to the mentioned trends on
A 2.2% deflation was recorded in Armenia in July as compared with
June with annual inflation being 10.7%. Under the state budget,
inflation was planned to make 4% (Â±1.5%) by the end of 2008