CENTRAL BANK OF ARMENIA DRIVES REFINANCING RATE 0.25 PERCENTAGE POINTS UP TO ANNUAL 6%

ARKA News Agency
Feb 4 2008
Armenia

YEREVAN, February 4. /ARKA/. Central Bank of Armenia decided Monday
to drive refinancing rate 0.25 percentage points up to annual 6%,
the CBA press office reports.

The report says that the bank board’s members are united in thinking
that high inflation rate create adverse environment for weakening
inflation pressures on domestic economy.

At the same time, developments inside the country will heavily
depend on high pace of individual consumption growth and the taxation
budgetary policy to be widened in 2008.

The CBA board members expect the outside inflation pressure to go on
throughout this year. They think it will be possible to curb inflation
and mitigate inflation pressure only by tightening monetary conditions.

2.4% inflation was recorded in Armenia in January 2008, compared with
the previous year’s December, and 6.6%, compared with January 2007.

In the state budget, inflation is planned to be 4% (+- 1.5%) by
late 2008.