Central Bank Left Refinancing Rate Unchanged

CENTRAL BANK LEFT REFINANCING RATE UNCHANGED

ARMENPRESS
7 August, 2012
YEREVAN

Yerevan, August 7, ARMENPRESS: The Central Bank council made a
decision to leave the refinancing rate 8% unchanged in the session
held on August 7. As “Armenpress” was briefed by the CB public
relations service, 1.5% deflation is registered in July resulting
2.3% 12-month inflation approaching the allowable range lower limit
of the variations.

The council noted that in the slow recovery of the world demand for
primary products in the international markets prevent deflationary
tendencies and stabilization are expected. Inflationary expectations
of grain products in the international markets are predetermined
in Russia, Kazakhstan and the USA because of the harvest reduction
caused by dry weather, which may be significant in terms of expansion
of the inflationary environment in the Republic of Armenia.

The council assessed the Armenian economic further developments
connected with prevent inflation in the influence of low inflationary
environment and the continuous high growth of the economy crediting in
the rates of private consumption growth. It is likely to continue in
the coming months leading to increase aggregate demand and inflationary
potential formation.

Taking into consideration inflation in 2012 second quarter a decline
in agricultural commodity prices due to low level, as well as the
expansion of the risks of inflationary environment, the CB council
considers it expedient to leave the refinancing rate unchanged,
whereas the 12-month inflation rate in a year horizon will form the
allowable variations 4% + / – 1.5 percentage point range.

From: Emil Lazarian | Ararat NewsPress