Tweet
ARMENIA'S CENTRAL BANK CUTS KEY REFINANCING RATE BY 0.25 BASIC POINTS TO 7.5 PERCENT
YEREVAN, February 11. / ARKA /. The Central Bank of Armenia said it has
cut the key refinancing rate today by 0.25 percentage points to 7.5%.
The regulator said also inflation in January rose by 2.8% making the
12-month inflation 5.5%. According to the Central Bank, inflation
has been falling in recent months more rapidly than expected due to
lower than planned economic activity and a decrease in international
prices of basic foodstuffs.
The Central Bank said also its Board believes that the 12-month
inflation in the coming months will continue to decline, particularly
in the third quarter, to reach the lower target threshold of allowable
fluctuation range due to the elimination of the impact of rising
energy tariffs in July 2013.
The Board also said that external processes were mainly within
the forecast horizon amid slow global growth recovery trend with
non-inflationary environment preserved at commodities market along
with deflation at international food markets.
According to the Board, despite some revitalization of the economy in
the fourth quarter, economic growth rate is still low, due mainly to
decline in construction sector. The Board believes that the weakening
monetary conditions, along with expansion of fiscal policy in the
second half of 2014 and stabilization of private investment will lead
to increased aggregate demand and restore inflation.
The Board believes that there are significant uncertainties in the
context of external and internal economic processes, based on which
the regulator will clarify the future direction of monetary policy
to secure achieving the inflation target in the medium term.
The last time the CB changed refinancing rate was on the 24th of
December 2013, reducing it by 0.25 percentage points to 7.75%. The
government expects inflation this year to be 4 % (± 1,5%), and GDP
to grow by 5.2%. -0-
- See more at:
http://arka.am/en/news/economy/armenia_s_central_bank_cuts_key_refinancing_rate_b y_0_25_basic_points_to_7_5_percent_/#sthash.oLBubxBK.dpuf
From: A. Papazian
YEREVAN, February 11. / ARKA /. The Central Bank of Armenia said it has
cut the key refinancing rate today by 0.25 percentage points to 7.5%.
The regulator said also inflation in January rose by 2.8% making the
12-month inflation 5.5%. According to the Central Bank, inflation
has been falling in recent months more rapidly than expected due to
lower than planned economic activity and a decrease in international
prices of basic foodstuffs.
The Central Bank said also its Board believes that the 12-month
inflation in the coming months will continue to decline, particularly
in the third quarter, to reach the lower target threshold of allowable
fluctuation range due to the elimination of the impact of rising
energy tariffs in July 2013.
The Board also said that external processes were mainly within
the forecast horizon amid slow global growth recovery trend with
non-inflationary environment preserved at commodities market along
with deflation at international food markets.
According to the Board, despite some revitalization of the economy in
the fourth quarter, economic growth rate is still low, due mainly to
decline in construction sector. The Board believes that the weakening
monetary conditions, along with expansion of fiscal policy in the
second half of 2014 and stabilization of private investment will lead
to increased aggregate demand and restore inflation.
The Board believes that there are significant uncertainties in the
context of external and internal economic processes, based on which
the regulator will clarify the future direction of monetary policy
to secure achieving the inflation target in the medium term.
The last time the CB changed refinancing rate was on the 24th of
December 2013, reducing it by 0.25 percentage points to 7.75%. The
government expects inflation this year to be 4 % (± 1,5%), and GDP
to grow by 5.2%. -0-
- See more at:
http://arka.am/en/news/economy/armenia_s_central_bank_cuts_key_refinancing_rate_b y_0_25_basic_points_to_7_5_percent_/#sthash.oLBubxBK.dpuf
From: A. Papazian