CBA RAISES REFINANCING INTEREST RATE BY 0.25% TO 7.5%
Noyan Tapan
Au g 4, 2008
YEREVAN, AUGUST 4, NOYAN TAPAN. On August 4, 2008, the Central Bank
of Armenia (CBA) Board raised the refinancing interest rate by 0.25%,
fixing it at 7.5%.
According to the CBA PR Service, although a 2.2% fall in prices was
registered in July on June 2008, the 12-month inflation grew by almost
1% and made 10.7%.
The CBA Board confirmed that although international prices of some
foodstuffs continue to have a downward tendency registered in the
previous months, this tendency has not been reflected in domestic
prices. At the same time, despite the fact that international oil
prices somewhat fell since mid July, the uncertainty on further changes
in these prices remains. In this regard, the secondary impacts of
inflation’s potential have not weakened, and they continue to affect
prices of non-food commodities and tariffs of services.
Taking into account the high inflation rates and considering it
important to weaken inflationary expectations and reduce deviations
from the target, the CBA Board believes that further changes in the
refinancing interest rate will be depend on the speed and amount of
the response of domestic prices to the indicated tendencies regarding
commodity prices in international markets in the coming months.