The Central Bank of Armenia raises refinancing interest rate to 5,25%

arminfo
2007-11-03 06:07:00

ArmInfo. At today’s session, the Council of the Central Bank of Armenia
raised the refinancing interest rate by 0,25 percentage points, which
made up 5,25%.

The CBA press-service told ArmInfo that in Armenia 3,1% inflation was
observed in October 2007 as compared to September 2007, and the annual
inflation made up 5,7%, which is by 0,2 percentage points higher than
the scheduled target maximum 4+/-1,5%.

The CBA Council confirmed that unprecedented rise in international
prices of oil products, wheat, butter and vegetable oil led to high
inflation in the domestic market, despite the tendencies of AMD
consolidation. CB Council is of the opinion that neutralization of
external shocks will not be possible by monetary ways. However,
secondary impact of tendencies of external environment accompanied by
reinforcement of growth rates of private demand and the expected impact
of increasing budgetary expenses will keep inflationary pressure.

According to the source, CB pursues an aim to neutralize accumulated
inflationary pressure and to keep inflation within the frames of
scheduled target level within the next 12 months, by means of today’s
rise of percentage rates, as well as their rise of October 2.