PRIMARY GOAL OF CBA IN 2008 IS TO ENSURE PRICE STABILITY

Noyan Tapan
Feb 5, 2008

YEREVAN, FEBRUARY 5, NOYAN TAPAN. At the February 5 sitting, the RA
National Assembly took notice of the 2008 program of monetary and
credit policy of the Central Bank (CBA). The CBA chairman Tigran
Sargsian in particular said that this year the CBA will continue the
strategy of shifting to inflation targeting. In implementing this
strategy, the CBA will mainly be guided by the major and primary
goal of ensuring price stability. The target index of inflation was
establshed at annual 4% +- 1.5% for 2008-2010. Overall inflation:
growth of the index of consumer prices, which represents the growth
of the index of prices of 470 consumer goods and tariffs of services,
was established as the index of inflation. At the beginning of each
quarter, the CBA board will make a decision on directions of the
monetary and credit policy for each quarter, based on forecasts about
inflation, scenarios of development of the world economy, as well as
inflation risks.