Central Bank of Armenia Holds Rate at 8.00%

The Central Bank of Armenia held its key refinancing rate unchanged at 8.00%.  The Central Bank Board said in its release [translated]: "The Council noted that at present there is no inflationary pressures from penetrating global economy into the RA. With the expected slowdown of the world economic growth is assumed that the market prices of basic raw and food did not significantly change, which corresponds to the baseline scenario the global economy outlined in the "Programme of the monetary policy of the 4th quarter of 2011. " At the same time, there are still uncertainties associated with debt problems in developed countries."

Previously the Bank cut the reference rate by 50 basis points at its September meeting, after last raising the refi rate by 25 basis points to 8.50% in April this year.  Armenia reported annual inflation of 4.8% in November, the same as 4.8% in August; down from the higher figures seen earlier this year e.g. 9% in May, and 11.5% in March, yet still within the inflation target range of 2.5%-5.5%.  The Armenian economy is projected to grow by 4.6% this year.  Armenia's currency, the Armenian Dram (AMD), last traded around 383.6 against the US dollar.

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