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ARMENIA'S CENTRAL BANK RAISES KEY REFINANCING RATE BY 0.5 PERCENTAGE POINTS TO 8.5%
YEREVAN, August 13. / ARKA /. Armenia's Central Bank has decided
today to raise its key refinancing rate by 0.5 percentage points
to 8.5%. It said in a statement that the 0.4% inflation recorded
in July was prompted by an increase in electricity and gas prices,
while a year ago the inflation dropped by 1.5%. This year's rise led
to an 8.5 percent annualized inflation rate, it said.
"The Central Bank's decision (to raise the key rate) is aimed at
mitigating the secondary impact of increased electricity and gas
prices. Besides, the Central Bank Board is eager to preserve the
real positive interest rates. The CB's policy is expected to ease
the inflation gradually over the next months. The Central Bank will
respond to gradual decline in inflation rate and a possible slowdown in
economic growth by loosening its monetary policy terms", the CB said.
The Central Bank said also it believes that the external sector
is within the projected frame. According to it, the slowing global
economic growth tendency continues as commodity prices show a certain
deflationary trend. These processes suggest that no additional
inflationary pressures from the external sector are expected, the
Central Bank said.
According to the Central Bank, economic developments in the country in
the first half of the year formed a higher than expected inflation,
escalated by developments in the agricultural sector in the second
quarter, when it was affected by hailstorms and a rise in prices for
some services.
"The Central Bank Board believes that inflation will be gradually
declining to the target level and remain there within the permissible
fluctuation band", it said.
According to the National Statistical Service, the first half inflation
rose by 4.1% year-on-year. The government inflation projection for
this year is 4%. (± 1.5%). The last time the Central Bank revised
its refinancing rate was in 2011 September, when it cut it by 0.5
percentage point to 8 percent. -0-
- See more at:
http://arka.am/en/news/economy/armenia_s_central_bank_raises_key_refinancing_rate _by_0_5_percentage_points_to_8_5/#sthash.1SeOZQ1t.dpuf
From: A. Papazian
YEREVAN, August 13. / ARKA /. Armenia's Central Bank has decided
today to raise its key refinancing rate by 0.5 percentage points
to 8.5%. It said in a statement that the 0.4% inflation recorded
in July was prompted by an increase in electricity and gas prices,
while a year ago the inflation dropped by 1.5%. This year's rise led
to an 8.5 percent annualized inflation rate, it said.
"The Central Bank's decision (to raise the key rate) is aimed at
mitigating the secondary impact of increased electricity and gas
prices. Besides, the Central Bank Board is eager to preserve the
real positive interest rates. The CB's policy is expected to ease
the inflation gradually over the next months. The Central Bank will
respond to gradual decline in inflation rate and a possible slowdown in
economic growth by loosening its monetary policy terms", the CB said.
The Central Bank said also it believes that the external sector
is within the projected frame. According to it, the slowing global
economic growth tendency continues as commodity prices show a certain
deflationary trend. These processes suggest that no additional
inflationary pressures from the external sector are expected, the
Central Bank said.
According to the Central Bank, economic developments in the country in
the first half of the year formed a higher than expected inflation,
escalated by developments in the agricultural sector in the second
quarter, when it was affected by hailstorms and a rise in prices for
some services.
"The Central Bank Board believes that inflation will be gradually
declining to the target level and remain there within the permissible
fluctuation band", it said.
According to the National Statistical Service, the first half inflation
rose by 4.1% year-on-year. The government inflation projection for
this year is 4%. (± 1.5%). The last time the Central Bank revised
its refinancing rate was in 2011 September, when it cut it by 0.5
percentage point to 8 percent. -0-
- See more at:
http://arka.am/en/news/economy/armenia_s_central_bank_raises_key_refinancing_rate _by_0_5_percentage_points_to_8_5/#sthash.1SeOZQ1t.dpuf
From: A. Papazian