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