JAVADYAN: CENTRAL BANK OF ARMENIA RAISES REFINANCING INTEREST RATE TO 7.75%

ARKA
March 3, 2009

YEREVAN, March 3. /ARKA/. Board of the Central Bank of Armenia has
raised refinancing interest rate 1.0 percentage points to 7.75%,
Central Bank Chairman Arthur Javadyan said on Tuesday.

He told journalists that the decision was prompted by the fact that
crises-caused deflation environment on world markets and slowing
growth in domestic demand foster low inflation.

Nevertheless, he said, risks of increase in target inflation indicators
are becoming very likely amid devaluating currency.

The previous change in refinancing interest rate was made on February
10. It was driven 0.25 percentage points down to 6.75%.