YEREVAN, April 14, /ARKA/. Armenia’s Central Bank said Tuesday it has raised the refinancing rate by 0.5% percentage point to 7%. The bank’s press office said the inflation rate rose by 0.8% in March from February to 8.8%, if compared to March 2009.

The Central Bank Council stated that in conditions of expansionary credit and money and tax and budget policy, implemented as part of the government’s anti-crisis measures and in conditions of positive global economic recovery, economic growth rate is higher than projected. As a result the inflationary environment was formed largely under the influence of these factors that is in tune with the direction envisaged by the Central Bank.

The Central Bank Council said also that within the frameworks of formed macroeconomic environment and the rise of utilities tariffs from April 1, the inflationary environment will be preserved within the projected targets, despite the ongoing drop of 12-month inflationary rate.

The Central Banks said this in view it continues to emphasize the importance of toughening of money and credit policy aimed at formation of real interest rates. It said also the Central Bank Council along with the government’s anti-inflationary measures will create real conditions for bringing the inflation rate within projected targets.

Last time the Central Bank raised its refinancing rate on March 9 by 0.5 percentage point to 6.5%. -0-