ARMENIA HOLDS RATE, SEES INFLATION IN TARGET RANGE IN 2015

Counting Pips
Nov 11 2014

November 11, 2014

By CentralBankNews.info

Armenia’s central bank left its benchmark refinancing rate steady at
6.75 percent and said inflation is expected to approach its target
in coming months and stabilize within the target range in 2015.

The Central Bank of Armenia, which has cut its rate by 100 basis
points this year, also said economic activity remains low and is
expected to continue to weaken due to weaker demand.

Armenia’s headline inflation rate rose to 2.2 percent in October from
1.48 percent in September while its Gross Domestic Product expanded
by an annual 2.3 percent in the second quarter, down from 3.1 percent
in the first quarter.

The central bank targets inflation of 4.0 percent, plus/minus 1.5
percentage points.

Armenia, located east of Turkey and west of Azerbaijan, is being
affected slow growth in Russia and the central bank once again referred
to “significant uncertainties in geopolitical developments related
to the economic prospects and commodity markets of partner countries.”

Last smooth the central bank estimated growth as of late September
at 3.8 percent, up from 2.6 percent at the end of the second quarter,
due to larger than expected growth in in agriculture.

It also said on Oct. 3 that private consumption had risen by 2.9
percent in the first nine months of the year, down from the planned
target of 3.1 percent, while exports in the first eight months rose
by 1.1 percent from the same period last year while imports were up
by 3.8 percent.

The government’s projection for growth this year is 5.2 percent.

From: Emil Lazarian | Ararat NewsPress