2 minute read
YEREVAN, AUGUST 14, ARMENPRESS: At the Council session of the Central Bank of Armenia held on August 13 it was decided to increase the refinancing rate by 0.5 percentage points making it 8.5%. As Armenpress was reported by the Department for Public Relations of the Central Bank, in July 2013, mainly due to higher prices ofpower generating materials, a rise in prices of 0.4% was registered in comparison with the 1.5% deflation in the same period of the previous year, thus bringing to the increase of the 12-month inflation, making 8.5% at the end of July. The decision of the Central Bank aims at the softening of the inflationary expectations formed due to the domestic developments. The Council also highlighted the maintenance of the positive real interest rates. In the result of the Central Bank’s policy it is expected that the inflation will gradually decrease in the coming months. The Council determined that the external sector was within the forecast. The trends of the world economic growth rates slowdown have been maintained and in the international markets of the raw materials and food products certain deflation trends have been registered. The Council estimated that along with the developments of the domestic economy in the first half of the year quite a high inflation has been formed, which was highly contributed by the developments in the agricultural field (hail fall and partial delay of vegetative period) in the second three months of the year and the rise in prices for some services. The Council also expressed an opinion that the inflation, gradually decreasing, will return to the target level.