Armenian Central Bank Raises Refinancing Rate By 0.5% To 7 %

ARMENIAN CENTRAL BANK RAISES REFINANCING RATE BY 0.5% TO 7 %

ARKA
April 14, 2010
Yerevan

YEREVAN, April 14, /ARKA/. Armenia’s Central Bank said Tuesday it
has raised the refinancing rate by 0.5% percentage point to 7%. The
bank’s press office said the inflation rate rose by 0.8% in March
from February to 8.8%, if compared to March 2009.

The Central Bank Council stated that in conditions of expansionary
credit and money and tax and budget policy, implemented as part of the
government’s anti-crisis measures and in conditions of positive global
economic recovery, economic growth rate is higher than projected. As
a result the inflationary environment was formed largely under the
influence of these factors that is in tune with the direction envisaged
by the Central Bank.

The Central Bank Council said also that within the frameworks of formed
macroeconomic environment and the rise of utilities tariffs from April
1, the inflationary environment will be preserved within the projected
targets, despite the ongoing drop of 12-month inflationary rate.

The Central Banks said this in view it continues to emphasize the
importance of toughening of money and credit policy aimed at formation
of real interest rates. It said also the Central Bank Council along
with the government’s anti-inflationary measures will create real
conditions for bringing the inflation rate within projected targets.

Last time the Central Bank raised its refinancing rate on March 9 by
.5 percentage point to 6.5%.

From: Emil Lazarian | Ararat NewsPress

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS