CBA REDUCES REFINANCING INTEREST RATE BY 0.25%

Noyan Tapan
Apr 04 2007

YEREVAN, APRIL 4, NOYAN TAPAN. At the April 3 sitting, the Central Bank
of Armenia (CBA) Board made a decision to reduce the CBA refinancing
interest rate by 0.25% to 4.5%, NT was informed from the CBA press
service.

It was noted that a 0.6% price fall was registered in Armenia in
March on February 2007, as a result of which the 12-month inflation
made 4.4%. This index is by 0.7% lower than the index forecast for
the first quarter of 2007.

In the opinion of the CBA Board, inflation pressures from the external
sector have declined considerably, while the current tendencies in
the economy (conditioned by development of the gross demand), have
not formed a basis for an increase in inflation pressures. In this
situation the CBA Board considers it realistic that inflation will
be lower than 4% target inflation index.

The CBA Board does not rule out further changes in interest rates if
the current prospects of economic development remain.