CENTRAL BANK OF ARMENIA DOESN’T SEEK TO REACH PLANNED INFLATION IN 2010 AT ANY PRICE

ARKA
March 12, 2010

YEREVAN, March 12. /ARKA/. The Central Bank of Armenia doesn’t seek
to reach the planned inflation indicator in 2010 at any price, Arthur
Stepanyan, chief of Armenian central bank’s monetary policy unit,
said Thursday at a press conference.

In its monetary policy program for 2010, the Central Bank of Armenia
planned 7.4% inflation.

Stepanyan said that the central bank planned this indicator without
taking into account its steps.

"Our steps can lessen inflation to the indicator recorded in Armenia
in late 2009 – 6 to 7%."

According to National Statistical Service of Armenia, consumer
prices rose 6.5% in Dec 2009, compared with the same month of the
previous year.

Stepanyan said that Armenian economy is gradually recovering now
after the 2009 downturn.

He thinks it would be wrong to reach the targeted inflation rate by
taking sharp steps that could hobble economic development.

Stepanyan said that the central bank pursued a reasonable policy last
year and intends to continue it.

"This is necessary to stabilize economic growth, since stability of
inflation, even taking into account certain volatility, contributes a
great deal to stable economic growth. Our measures are aimed at this."

The chief of the central bank’s division said that the regulator
pursues long-term goals.

"If 6% inflation is recorded this year instead of the planned 4-5.5%,
but economic growth speeds up instead, it will be more effective and
better to all than intention to reach 4% inflation at any price,"
he said. "Believe me, we can reach this level, but at the account of
economic growth."

In the 2010 state budget, Armenian government planned 1.2% economic
growth.