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CBA SETS REFINANCING INTEREST RATE AT 5.25%
Noyan Tapan
Nov 5, 2007
YEREVAN, NOVEMBER 5, NOYAN TAPAN. In accordance with the November
2 decision of the Central Bank of Armenia (CBA), the refinancing
interest rate has been raised by 0.25% and set at 5.25%.
According to a press release of the CBA press service, a 3.1% inflation
was registered in October on September 2007, as a result of which
the the 12-month inflation made 5.7%, which is greater by 0.2% than
the upper limit of the target inflation of 4+-1.5%.
The CBA board confirmed that an unprecedented growth in prices of oil
products, wheat, butter and vegetable oil in recent months, together
with the continuous tendency to appreciation of the Armenian dram,
have lead to the formation of a high inflation environment in the
domestic market. In the opinion of the CBA board, it is impossible to
neutralize the above mentioned external inflation shocks by means of
monetary levers. However, the secondary impact of such developments
in the external environment, while combined with an increase in
private consumption rates, will continue to maintain the inflation
pressures. The CBA raised the refinancing interest rate on October
2 as well. The aim of this policy is to neutralize the accumulated
inflation pressures and keep the inflation within the target interval
within the next 12 months.
Noyan Tapan
Nov 5, 2007
YEREVAN, NOVEMBER 5, NOYAN TAPAN. In accordance with the November
2 decision of the Central Bank of Armenia (CBA), the refinancing
interest rate has been raised by 0.25% and set at 5.25%.
According to a press release of the CBA press service, a 3.1% inflation
was registered in October on September 2007, as a result of which
the the 12-month inflation made 5.7%, which is greater by 0.2% than
the upper limit of the target inflation of 4+-1.5%.
The CBA board confirmed that an unprecedented growth in prices of oil
products, wheat, butter and vegetable oil in recent months, together
with the continuous tendency to appreciation of the Armenian dram,
have lead to the formation of a high inflation environment in the
domestic market. In the opinion of the CBA board, it is impossible to
neutralize the above mentioned external inflation shocks by means of
monetary levers. However, the secondary impact of such developments
in the external environment, while combined with an increase in
private consumption rates, will continue to maintain the inflation
pressures. The CBA raised the refinancing interest rate on October
2 as well. The aim of this policy is to neutralize the accumulated
inflation pressures and keep the inflation within the target interval
within the next 12 months.