CENTRAL BANK OF ARMENIA REDUCES REFINANCING RATE BY 0.5PCT TO 7.25% P.A.

ARKA
Dec 2, 2008

YEREVAN, December 3. /ARKA/. The Central Bank of Armenia (CBA)
decided to reduce the refinancing rate by 0.5pct down to 7.25%
p.a. at yesterday’s meeting of the CBA Board presided over by the
CBA Chairman Artur Javadyan.

The Board confirmed that external and internal environment developments
in November were mainly in line with expectations for the fourth
quarter, the CBA Press Service reported. Certain risks of reduction
in economic growth rates came up.

Internal inflationary environment started to considerably weaken in
responding the trends for continuous reduction in global prices for
foodstuffs and fuel in the last months. This led to reduction in
prices for bakery goods and petrol in particular.

According to the CBA report, the continuous weakening of external
inflationary pressures and response of the domestic prices in the
upcoming 12 months will bring to a substantial reduction in inflation
level. Under these circumstances, the CBA Board considers it worth
"to weaken monetary and credit conditions to support maintaining high
economic growth rates".

0.1% inflation was recorded in November against October with annual
inflation having reduced by 2pct down to 6.6%.

Under the state budget, inflation level was expected at 4% (±1.5%)
in Armenia by the end of 2008.

–Boundary_(ID_gCr0l0gja5ambFfhe5ki3g)–

From: Emil Lazarian | Ararat NewsPress