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ARMENIAN CB MAY SPECIFY INTEREST RATES ON OPERATIONS
Arka News Agency, Armenia
Dec 8 2006
YEREVAN, December 8. /ARKA/. The Central Bank of Armenia (CBA)
does not rule out the possibility of specifying the interest rates
on its operations. If the current prospects for economic development
are maintained, the CBA Board may specify the current interest rates
within the next few months.
The CBA Board members pointed out that despite external pressures
on inflation in Armenia, they are expected to be reduced during the
next 12 months. In general, the pressures are not yet connected with
the high prices for energy carriers and for other products.
High growth rates in the construction and services sectors are
maintained as well. In these conditions, the increase in the
population's incomes accompanied by increase in private transfers
exerts moderate inflationary pressure as well.
At the same time, to satisfy the keen seasonal demand for Armenian
drams and continuing dramalization in economy, the CBA purchases
foreign exchange, which results in excessive economic liquidity
The CBA believes that this excess may be neutralized with current
interest rates.
The CBA Board decided to leave the annual refinancing rate unchanged -
4.75%.
Arka News Agency, Armenia
Dec 8 2006
YEREVAN, December 8. /ARKA/. The Central Bank of Armenia (CBA)
does not rule out the possibility of specifying the interest rates
on its operations. If the current prospects for economic development
are maintained, the CBA Board may specify the current interest rates
within the next few months.
The CBA Board members pointed out that despite external pressures
on inflation in Armenia, they are expected to be reduced during the
next 12 months. In general, the pressures are not yet connected with
the high prices for energy carriers and for other products.
High growth rates in the construction and services sectors are
maintained as well. In these conditions, the increase in the
population's incomes accompanied by increase in private transfers
exerts moderate inflationary pressure as well.
At the same time, to satisfy the keen seasonal demand for Armenian
drams and continuing dramalization in economy, the CBA purchases
foreign exchange, which results in excessive economic liquidity
The CBA believes that this excess may be neutralized with current
interest rates.
The CBA Board decided to leave the annual refinancing rate unchanged -
4.75%.