Armenia’s Central Bank anticipates 12-month inflation at projected 4% (±1,5%)

20.04.2012 14:34
Armenia’s Central Bank anticipates 12-month inflation at projected 4% (±1,5%)

YEREVAN, April 20. /ARKA/. The Central Bank of Armenia finds it rational to confirm 12-month inflation rate at 4% (±1,5%) acceptable range, according to CBA Board session’s results reported by the bank’s press service to ARKA.

According to the press release, economic processes in Armenia are not inflationary and influence inflation environment in accordance with the country’s monetary-credit policy basic scenario. Outer processes, according to CB, are also anticipated by the basic scenario.

The source also says inflation rate in March was 0.1% from February. As a result 12-month inflation dropped by 0.8 p.p. to 2.2% at projected 4 ±1,5% range within the reported period.

The Board clarified that optimistic expectation raised by positive tendencies on economic activity in the leading countries resulted in formation of weak inflation environment at international raw materials and food markets.

Moreover, prices for oil products rose due to stagnation in geopolitical issues in Middle East, what was taken into account by the Central Bank while compiling its monetary-credit policy.

CB also reported on financial market development tendencies. Thus, average interest rate on government bonds with up to one –year maturity period shrank by 0,13 p. p. to 8.77%, interest rates on repo transactions fell by 1.07 p.p. to 9.81%, and interest rates on interbanking repo transactions lost 1.27 p.p. reaching 9.46%.

On April 10, CBA Board decided to leave the refinancing rate unchanged at 8%, lombard repo rate- at 11%, and rate on commercial banks’ deposits with the Central Bank at 5%.

Last time CBA downgraded its refinancing rate by 0.5 p.p. to 8% on September 6.—0—


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