CBA REDUCES REFINANCING RATE BY 0.5% TO 7.25%
Noyan Tapan
Dec 3, 2008
YEREVAN, DECEMBER 3, NOYAN TAPAN. At the December 2 sitting, the
Board of the Central Bank of Armenia (CBA) reduced the refinancing
rate by 0.5% to 7.25%.
According to the CBA PR Service, 0.1% inflation was recorded in
November on October 2008, as a result of which 12-month inflation
declined by 2% to 6.6%.
The CBA Board stated that in November the developments of the domestic
and external environments were mainly in line with the directions
forecast for the 4th quarter. The envisaged risks of a decline in
economic growth rates became apparent. At the same time, responding
to the tendencies of a continuous fall in international prices of
foodstuffs and fuel in recent months, the internal inflationary
environment considerably weakened, which was reflected in a fall of
prices of gasoline and "bread products" commodity group.
The continuous weakening of global inflationary pressures and the
response of domestic prices to these tendencies will result in a
considerable decline of the overall level of inflation in the next
12 months. Under such conditions the CBA Board considers it expedient
to use less strict monetary conditions in order to help maintain high
rates of economic growth.
From: Emil Lazarian | Ararat NewsPress
