CBA keeps refinancing rate unchanged, sets it 6%

On May 16 the Board of the Central Bank of Armenia (CBA) made a decision to keep the refinancing rate unchanged, setting it 6.0%, press service of the CBA told. In April, 2017, 1.0% ination was registered compared to 0.3% deation of April, 2016 which was mainly related with the formation of higher levels of prices of agricultural products.

The 12- month ination comprised 1.2%, exceeding the CBA’s expectations. The CBA Board estimates the ination will continue recovering in the predicted horizon and will be stabilized over a target gure. The ongoing growing trends of world economy in external sector are being improved, but the inationary developments are maintained in international commodity markets.

Nevertheless, the CBA Board expects only measurable inationary effects from the external sector in the upcoming months. The Board states that based on the results of rst quarter of 2017, quite high economic activity growth was recorded which was mainly related with the high growths registered in industry, services and trade fields.

At the same time, the boosting monetary-loan policy of the last years continues contributing to the restore the domestic demand. As a result, it is expected that the inflation in 2017 will be already formed in the allowable fluctuations range and will be stabilized over a target gure in the predicted horizon.

At the same time it is estimated that the inflationary risks are mainly balanced at the moment, and in this case the CBA Board finds it appropriate to remain the monetary-loan terms unchanged.