CENTRAL BANK PROMISES TO KEEP INFLATION RATE LOW

Tert.am
14.06.11

The Central Bank of Armenia (CBA) promises to keep the inflation rate
within the range of 4±1,5%, the CBA president has told reporters.

At a news conference on Tuesday, Artur Javadyan said the inflation may
not hit the 5.5% ceiling in case the economy does not face pressures
resulting from agricultural risks and the prices on the world market
remain stable.

“We forecast a high inflation rate – about 9% – for the first quarter,
and a subsequent slowdown for the summer months,” he said.

Javadyan added that the refinance interest rate produces a lagging
effect on inflation. He noted further that the CBA has resorted to
other tools to sustain the inflation.

The inflation rate in Armenia was 8.9% in April, compared to the 9%
in May.