REFINANCING RATE RAISED BY CB OF ARMENIA TO ANNUAL OF 6.5%

ARKA
April 2, 2008

YEREVAN, April 2. /ARKA/. The Central Bank of Armenia (CBA) raised the
refinancing rate by 0.25pct up to an annual of 6.5%. This decision
was adopted at the sitting of the CBA Directors Board today, the
Press Service of the CBA reported.

The CBA Directors Board confirmed that high inflationary environment
continues deepening in world markets substantially influencing domestic
prices for foodstuffs. The secondary effects of the mentioned factors
has already started showing up leading to rise in prices for nonfood
stuffs and services.

The CBA Directors Board suggests that in the near future inflationary
pressures will be maintained and gradual toughening of the conditions
of monetary and credit policy is aimed at mitigating inflationary
expectations and neutralizing the secondary effects of the above
factors.

In March inflation was 1.4% in Armenia against February. Annual
inflation was 9.6% as compared with the same period of last year,
which is a 3poct increase against the annual inflation level recorded
by the end of 2007.

Under the state budget, inflation is planned at 4% (±1.5%) by the
end of 2008.

–Boundary_(ID_NNb8p8/at6OmhCPOyZxdpA)–

From: Emil Lazarian | Ararat NewsPress