ARMENIAN CENTRAL BANK RAISES REFINANCING RATE BY 0.5 P.P. TO 5.5%

ARKA
Jan 20, 2010

YEREVAN, January 21, /ARKA/. Armenia’s Central Bank said today it
has raised the refinancing rate by 0.5% percentage point to 5.5%. The
bank’s press office said the inflation rate rose by 2% in 2009 December
from November, dragging the full-year inflation rate up to 6.5%,
exceeding the targeted ceiling by 1.0 percentage point.

The Central Bank said against the backdrop of global economic recovery
the external inflationary pressure is being accelerated by higher
than expected pace of rise of international prices of raw-materials
and basic foodstuffs. It said the overall inflationary background
is being effected also by recovering domestic economic activity and
growing demand.

The Central Bank said as a result of continued inflationary trends and
economic recovery expectations the high inflationary environment will
be preserved in the perspective future to be reflected in tightening
fiscal and credit policy.

Last time the Central Bank raised its refinancing rate on March
3, 2009 by 1 percentage point to 7.75% after it reverted to the
floating exchange rate of the national currency Dram. Later it reduced
refinancing rate on April 7 to 7.%, then on May 12 to 7.25%. On May
22 it fell by another 1 percentage point to 6.25%. On July 7 the
refinancing rate was lowered to 5.5% and to 5% of September 8, 2009.

From: Emil Lazarian | Ararat NewsPress