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YEREVAN, SEPTEMBER 27, ARMENPRESS. TheCouncilof theCentral BankofArmenia decided to lower the refinancing rate by 0.5 percentage point fixing it at 6.75% during the session on September 27, press service of the Central Bank informed “Armenpress”.
In August 2016, 0.5% deflation was recorded compared to the 0.1% inflation of the same month of the previous year, due to which the 12-month long inflation decreased, fixing at -1.9% at the end of the month. According to the CB assessments, the deflation will be preserved during September, and will significantly diminish until the end of the year.
Slow economic growth rates and relative stability of markets have been preserved on the international level. The CB Board finds no external inflationary factors are expected during the upcoming months.
The Board records that after the high economic activity of the first half of 2016, the economic indications for the second half of the year speak about the worsening prospects for economy. As a result, the CB has revised its expectations from the development of domestic demand. In this situation the CB assesses that the relatively high external demand cannot fully compensate the low domestic demand which poses risks for the negative deviation of the foreseen inflation rate.
The CB has determined the Lombard repo rate and deposit rate at 8.25% and 5.25% respectively.