Armenia’s central bank leaves refinancing rate unchanged at 6 percent

Armenia’s Central Bank decided today to leave the refinancing rate unchanged at 6%.

YEREVAN, December 25, /ARKA/. Armenia’s Central Bank decided today to leave the refinancing rate unchanged at 6%. It said in late November, 2018 the inflation was 1%, down from 2% inflation recorded for the same month a year ago. As a result, the 12-month inflation in late November 2018 was 1.8%. The regulator said it believes that the low inflationary environment will continue in the coming months.

The Central Bank said also it expects no inflationary pressures from the external sector in the coming months because of weakening inflationary environment in international markets of major commodities, prompted in turn by central banks’ tightening monetary policies.

According to the regulator, the gross demand in the second half continues to remain relatively weak because of ongoing restraining fiscal policy and some drop in private spending. On the other hand, as a result of the low inflationary environment, the solvency of real incomes persists, also due to strengthening inflationary expectations.

The Central Bank also believes that in the context of predicted macroeconomic developments, it will be necessary to maintain the stimulating conditions as long as possible to ensure price stability in the medium term. 

In March 2017, the Central Bank suspended monetary policy easing, setting the refinancing rate at 6%. -0-