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Regulator: Inflation growth to slow down first half of this year
YEREVAN, March 12. /ARKA/. Inflation growth will slow down in the
first half of this year, Arthur Stepanyan, chief of the central bank's
division in charge of monetary policy, said Saturday at a news
conference.
He said that inflation in the country would precipitously subside in
the second half of this year coming close to the 4-5.5% projected in
the government budget.
`The central bank's steps aimed at curbing inflation lay ground for
returning inflation to the projected rate,' he said.
In the 2011 government budget, inflation is projected at 4±1.5%.
Voicing concern over the current inflation rate, Stepanyan said that
year-on-year inflation reached 12.4% in February 2011 mainly because
of hikes in food prices.
`The steps being taken by the government and the central bank's policy
will lay real ground for abatement of inflation in the second half of
this year,' he said. `Outlooks for prices for agricultural products
will be positive either in Armenia or All over the world.'
Asked by ARKA News Agency's correspondent about the instruments the
central bank intends to use for curbing inflation, Stepanyan said that
the regulator would keep using mainstream instruments.
`The central bank will raise benchmark refinancing rate and change
mandatory reservation norms,' he said. `There are no countries whose
regulators have other instruments but these ones.'
On March 4, the central bank's board raised benchmark refinancing rate
by 0.5 percentage points to 8.25%.
In February, the regulator changed mandatory reservation norms, which
now oblige banks to reserve 9% of their 12% mandatory reservation in
drams instead of former 6%, and the remaining 3% they can reserve in
foreign currencies instead of former 6%.
Stepanyan said that other, not so traditional instruments can be used
by the government and other competent institutions.
On Thursday, the Armenian government approved amendments to the law on
trade and services and the code on administrative offenses.
The amendments empower the government to interfere in price-making
process in the event of 30-percent rise in 20 names of primary
necessities over one month.
The government will have 90 days to interfere in this process and put
things right.
On Friday, Armenian President Serzh Sargsyan instructed the government
and the central bank to do whatever necessary to lower inflation rate.
In 2010, 9.4% inflation was recorded in Armenia. .-0--
From: A. Papazian
YEREVAN, March 12. /ARKA/. Inflation growth will slow down in the
first half of this year, Arthur Stepanyan, chief of the central bank's
division in charge of monetary policy, said Saturday at a news
conference.
He said that inflation in the country would precipitously subside in
the second half of this year coming close to the 4-5.5% projected in
the government budget.
`The central bank's steps aimed at curbing inflation lay ground for
returning inflation to the projected rate,' he said.
In the 2011 government budget, inflation is projected at 4±1.5%.
Voicing concern over the current inflation rate, Stepanyan said that
year-on-year inflation reached 12.4% in February 2011 mainly because
of hikes in food prices.
`The steps being taken by the government and the central bank's policy
will lay real ground for abatement of inflation in the second half of
this year,' he said. `Outlooks for prices for agricultural products
will be positive either in Armenia or All over the world.'
Asked by ARKA News Agency's correspondent about the instruments the
central bank intends to use for curbing inflation, Stepanyan said that
the regulator would keep using mainstream instruments.
`The central bank will raise benchmark refinancing rate and change
mandatory reservation norms,' he said. `There are no countries whose
regulators have other instruments but these ones.'
On March 4, the central bank's board raised benchmark refinancing rate
by 0.5 percentage points to 8.25%.
In February, the regulator changed mandatory reservation norms, which
now oblige banks to reserve 9% of their 12% mandatory reservation in
drams instead of former 6%, and the remaining 3% they can reserve in
foreign currencies instead of former 6%.
Stepanyan said that other, not so traditional instruments can be used
by the government and other competent institutions.
On Thursday, the Armenian government approved amendments to the law on
trade and services and the code on administrative offenses.
The amendments empower the government to interfere in price-making
process in the event of 30-percent rise in 20 names of primary
necessities over one month.
The government will have 90 days to interfere in this process and put
things right.
On Friday, Armenian President Serzh Sargsyan instructed the government
and the central bank to do whatever necessary to lower inflation rate.
In 2010, 9.4% inflation was recorded in Armenia. .-0--
From: A. Papazian