YEREVAN, JUNE 27, ARMENPRESS. The Central Bank (CB) Council passed a decision on June 27 to keep the re-financing rate unchanged at 6,0%, the CB told ARMENPRESS.

In May of 2017, a 0,2% deflation was recorded, compared to the previous year’s 0,7%, whereby the 12-month inflation continued to expand, amounting to 1,6% in the end of the month.

Taking into account the ongoing inflation developments, the CB Council evaluated that by the 2nd quarterly results the inflation behavior is proceeding in line with the planned scenario.

In the foreign sector, the global economy growth prospects continue to improve slowly, while short-term deflation manifestations were observed in the international commodity markets. The CB Council doesn’t expect significant inflation impacts from the external sector in the coming months.

In the 2nd quarter of 2017, the high economic growth pace was maintained – associated with high growths of mining industry, services and commercial sectors. At the same time, the gradual restoration of the domestic demand is continuing, which, in conditions of suppressive fiscal policy, is associated with the impact of the CB’s contributing fiscal policy, maintaining macroeconomic stability and comparably low inflation expectations.

Taking into account the abovementioned developments, as well as the balance of evaluated inflation risks, the CB Council finds it appropriate to keep the monetary-credit conditions unchanged.

As a result, it is expected that inflation will continue to increase: forming in the permissible range of fluctuations in 2017, while stabilizing around the target indicator in the forecasted horizon.

The CB finds that if the macroeconomic developments proceed under the forecasted scenario, the monetary-credit conditions will remain unchanged for a certain period of time.