ARMENIAN COMMERCIAL BANKS EXPECT 12-MONTH INFLATION TO RANGE BETWEEN 5.5% AND 8.5%

ARKA
Aug 27, 2009

YEREVAN, August 27. /ARKA/. Commercial banks of Armenia expect the
12-month inflation to range between 5.5% and 8.5%, the Central Bank
of Armenia (CBA) reported based on interviews made in the second
quarter of this year.

According to credit organizations, 12-month inflation will be within
2.5-5.5%, says CBA’s program of RA monetary and credit policy.

Last quarter projections of over 8.5% inflation prevailed over those
of 5.5%-8.5% inflation. There is hence some deviation from CBA’s
expectations for 12-month inflation, yet projections are milder as
compared to those in the previous period.

Non-commercial organizations of the real sector and households
believe more in price stability. According to the poll results, 62.3%
of respondents expect stable price levels in the current period as
compared to 51.6% in the previous quarter poll (an increase of 32.8%
against 36.7%).

The Central Bank of Armenia made interviews on inflation expectations
among financial organizations, non-commercial organizations of the
real sector and households in the second quarter of this year.

Today there are a total of 22 commercial banks and 25 credit
organizations in Armenia. ($1=376.09drams).