CENTRAL BANK OF ARMENIA LEAVES ANNUAL REFINANCING RATE AT 7.75%

ARKA
Nov 4, 2008

YEREVAN, November 4. /ARKA/. The Central Bank of Armenia decided
Tuesday to leave annual refinancing rate unchanged, at 7.75%.

The press office of the Central Bank of Armenia told ARKA News Agency
that inside and outside environment was developing throughout the
third quarter, just as the board forecast it at the previous meeting.

Outside inflation pressures due to declining world demand reflected
in downward movement of world food and non-food prices kept weakening
in October.

According to the Central Bank’s report, outside inflation pressures
started weakening on domestic market.

Taking into account volatility on markets amid the world financial
crisis and uncertain prospects as well as slow correction of prices
on the domestic market, the Central Bank found it reasonable to leave
refinancing rates on its operations pegged.

In October, compared with September, 0.7% inflation was recorded.

Year-on-year inflation was 8.6% after lowering 2.7 points.

Inflation was planned at 4% (±1.5%) in the 2008 state budget

–Boundary_(ID_SBaF3AoAS68WSDZ9l3zZXQ)–