Կենտրոնական բանկ

The Board of the CBA raised the refinancing rate by 0.50%

In the January 20, 2010 meeting the Board of CBA decided to raise the Refinancing Rate of CBA by 0.50 pp to 5.50 percent.

Inflation in December was round 2 percent against past November, and the 12-month inflation amounted to 6.5 percentage points, exceeding the upper border of the target by 1.0 pp.

The Board asserted that under trends of recovering world economy, inflationary pressures coming from the external sector are intensifying due to faster than expected increase of international prices of raw materials and basic foodstuff. In the meantime, gradual recovery of domestic economy and aggergate demand add to the inflationary environemnt.

In view of continued trends with inflation as well as expectations of the recovery of economic activity, the Board estimates that high inflationary environment will persist in the forecast time horizon as well. In such a situation, the gradual tightening of monetary policy is important.