YEREVAN, December 12. /ARKA/. The board of the Central Bank of Armenia decided Tuesday  to leave the current eight-percent benchmark refinancing rate unchanged, the regulator’s press office reports.

In November 2012, 1.4% inflation rate was recorded in the country. As a result, the twelve-month inflation rose to 3.6% coming close to the projected rate of 4 ±1,5%.

The Central Bank said also the macroeconomic processes in November proceeded mainly in line with the baseline scenario of the monetary and credit policy for the fourth quarter.

Amid ongoing uncertainty regarding political solution to the debt problems of the developed countries, the low level of global demand will persist, and the global food market will be pressured.
“The impact of the outer sector on the domestic prices will be low inflationary,” the source states.
In October-November 2012, high rates of private expenditures were maintained. Hike in money transfers by individuals for non-commercial purposes was recorded at the reported period. The source also said in October-November 2012 there was lower impact of the tax and budget policy on the gross demand. As a result, the expected influence of the Armenian economy on the domestic prices turn out to be low inflationary.

Due to the factual behavior of the 12-month behavior and a low inflationary environment in the prospects of foreign and Armenian economy development,  The board of the Central Bank of Armenia believes it is not rational to change the monetary and credit policy in December.
Within such circumstances, the 12-month inflation will get closer to the projected 4% benchmark. —0-