BANK OF ARMENIA RAISES ANNUAL REPO RATE TO 4.5%

RIA Novosti, Russia
Aug. 31, 2006

YEREVAN, August 31 (RIA Novosti) – Armenia’s central bank said Thursday
it will raise its annual refinancing rate (REPO) by .25 percentage
points to 4.5%, starting September 1.

In January 2006, the Bank of Armenia adopted a new inflation regulation
policy – targeting – to curb inflation by changing interest rates,
including the key REPO rate.

Armenia has experienced strong economic growth since 1995, and
inflation has been almost nonexistent for the past several years,
standing at 0.6% in 2005.