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YEREVAN, FEBRUARY 23, ARMENPRESS. The Central Bank of Armenia forecasts that the 12-month rise in price will fluctuate mainly between 4%±1.5% percentage points in 2015 and in the end of the year will come closer to target rate. According to the Inflation Report published by the Central Bank of Armenia, in case of unfavorable external economic environment, the rate of economic growth will slow down, speeding up instead the growth in other sectors, and gradually bringing them closes to the long-term balanced level.
Taking into account the predictions made based on the information prior to February 10, the Central Bank will keep reducing the pawn repo interest rate (currently 14.5%) for the first quarter, targeting the reduction of the short-term market rates. In this regard, the Central Bank has raised the refinancing interest rate since the beginning of the year (currently 10,5%) bringing the short term market interest rate closer to it, which will contribute to the strengthening of stabilization of the situation in the financial market.
The quarterly periodical Status Report on Implementation of Monetary Policy Program (Inflation Report) presents the previous quarter's inflation developments, domestic and external factors affecting it and course of attaining the inflation target. External environment, balance of payments, interest rates, exchange rate, monetary developments, aggregate demand, aggregate supply, labor market, import and producer prices, as well as inflation expectations are presented as domestic and external factors.