Interfax, Russia
Feb 18 2010

Armenian CB hikes refinancing rate from 5.5% to 6%

YEREVAN Feb 18

The Central Bank of Armenia has increased the refinancing rate from
5.5% to 6% pa, effective February 17, the Bank said.

Armenia saw December-to-January inflation of 1.7%, the Bank said.

January inflation year-on-year was 7%, exceeding target by 1.5
percentage points.

The Bank council stated that rising world prices for raw commodities
and basic foodstuffs, as well as the gradual resurrection of aggregate
demand in light of broad budgetary and tax policy, helped constrain
inflationary impact.

The previous refinancing rate change in Armenia was on January 20,
2010 – from 5% to 5.5%. The Central Bank cut the rate 0.25 percentage
points to 5% on September 8, 2009.