YEREVAN, June 3. / ARKA /. The revision of the Central Bank’s key refinancing rate will depend on how inflationary pressures in the economy will manifest, Andranik Grigoryan, head of a Central Bank division in charge of financial system development and stability, said today.

"The Central Bank uses different models to estimate the weighted and neutral rates and based on it sets the key refinancing rate. Depending on various factors, such as  anticipated inflation rate,  inflationary pressures and other indicators the Central Bank may review the refinancing rate either   downward or  upward,’ he said.

Grigoryan declined to say whether the Central Bank intends to revise its key rate in the near future.
On May 14 the Central Bank decided to keep its refinancing rate unchanged at 8%. In the first four months of 2013 the inflation rose by 3.2% year-on-year, while the economic activity index was said to have grown by 7.4%. The government’s inflation projection for this year is 4% (± 1.5%) and the  GDP growth  projection is  6.2%. -0-