CBA STIMULATE ECONOMY AND CURB INFLATION

PanARMENIAN.Net
28.08.2009 15:29 GMT+04:00

/PanARMENIAN.Net/ Optimal refinancing interest rate ensures low
inflation and high economic growth, finance minister of Armenia Tigran
Davtyan told a press conference on Friday.

According to him, Central Bank of Armenia continues the policy of
reducing the refinancing rate, which is fully welcomed by the ministry
of finance. "The process of reducing the refinancing rates continue,
and it stimulates the economy. We would be happy if the central bank
will continue reducing it, but the task of the central bank is not
only in stimulating the economy, but also curbing the inflation level.

Optimal refinancing rate ensures low inflation and high economic
growth," he said.

Nevertheless, according to the minister, positive trends observed
recently shape the "cheap money".

On August 11, 2009 the Central Bank of Armenia decided to reduce the
refinancing rate by 0.25 percentage points to 5.25 per cent per annum.

At the beginning of the year the refinancing rate was 8 per cent and
was reduced six times since March 3, when the central bank announced
a return to a floating rate policy and raised the refinancing rate
by one percentage point to 7.75 per cent per annum.