CBA LEAVES REFINANCING RATE UNCHANGED

YEREVAN, FEBRUARY 2, NOYAN TAPAN. At the February 2 sitting, the
Central Bank of Armenia (CBA) Board left the CBA refinancing interest
rate unchanged, setting it at 4.75%, NT was informed from the CBA
press service. The CBA Board takes the view that the already
registered fall in prices of oil products in international market, as
well as specification of forecasts on their fall in 2007 indicate a
decline in inflation pressures from the external sector. At the same
time, the CBA Board is unanimous in the opinion that these inflation
pressures are moderate, despite the continuing intertia of inflation
and the growth rates of gross demand. In this situatiion, the CBA
Board considers it realistic to achieve the inflation target under the
hypothesis of leaving unchanged the level of interest rates formed in
the market.