CB has set refinancing rate at 10.5%

YEREVAN, 10 FEBRUARY, ARMENPRESS. During its February 10 session, the Board of the Central Bank decided to raise the refinancing rate by 1 percent, setting it at 10.5%. As the Public Relations Service of the Central Bank reports to “Armenpress”, 2.5% inflation was recorded in January 2015, and the 12-month inflation rate made up 4.3% in late January and was near the target indicator. The Board believes the 12-month inflation rate will grow a little in the months ahead as a result of the low base in the same period last year, after which it will be near the target indicator once again.

The Board recorded that U.S. economy grew rapidly in the foreign sector in 2015, and rates are expected to grow parallel to that, contributing to the appreciation of the USD and the reduction of prices in the global raw material and food products markets. All this has led to the increase in the risks of investment in developing countries, which has become a reason for the high level of shifts in the currency markets of developing countries, as well as for the slowing down of the growth of interest rates and economic growth.

The Lombard repo rate and the rate for contributions have been set at 14.5% and 9%, respectively.