Կենտրոնական բանկ

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

In the July 7, 2009 meeting the Board of CBA decided to lower the Refinancing Rate of CBA by 0.50 pp to 5.50 percent.

In June, 2009 some 0.3 percent deflation was recorded while the 12-month inflation reached 3.6 percent, around 1.0 pp lower from the CBA projections.

The Board asserted that given the stable exchange rate of the national currency an increase in prices of some commodities in international markets has been reflected also in domestic prices of such commodities. However, in spite of a considerably faster than estimated economic decline, the domestic inflationary environment was weaker.

Despite substantial uncertainties with regard to the pace of anti-crisis program of the Government and the likely timing and rate at which the world economy would recover, the Board finds it reasonable to continue cutting interest rates while actively implementing a policy of quantitative easing.