Կենտրոնական բանկ

The Board of the CBA lowered the refinancing rate by 0.25%

In the August 11, 2009 meeting, the Board of CBA decided to lower the Refinancing Rate of CBA by 0.25 pp to 5.25 percent.

In July, 2009 inflation was 2.7 percent while the 12-month inflation reached 3.1 percent, remaining within the lower bound of the target band.

The Board confirmed that in the external sector the expectations of some improvement in the world economy was observed together with certain growth of prices of raw materials. At the same time, the July deflation was mainly due to typical seasonality of price drop of agricultural products. Given this, although the growth of prices of non-food products and services increased, the core inflation remained stable.

In the current macro environment the Board finds it important to implement expansionary monetary policy which will encourage economic recovery the most without jeopardizing the prices stability.