YEREVAN, NOVEMBER 13, ARMENPRESS. The Board of the Central Bank of Armenia made a decision to keep the refinancing rate unchanged, setting it 6.0% during today’s session, the CBA told Armenpress.

0.1% inflation has been recorded in October, and in such circumstances the 12-month inflation decreases comprising 2.8% by the end of the month. The CBA Board assesses that the inflationary environment will be stable in the upcoming months and the 12-month inflation will be maintained in a somewhat lower level from the targeted indicator.

The global economic growth trends are maintained under which the central banks of leading countries are gradually toughening the terms of the monetary-loan policy. At the same time, the inflationary environment of main goods has somehow weakened in the international markets, based on which the CBA Board estimates that no inflationary pressures are expected from the external sector in coming months.

The Board states that in the third quarter of 2018 a certain weakening of economic activity has been observed, mainly in connection with the decline of agricultural volumes and slowing growth rates of the construction sector. At the same time it is estimated that the ongoing fiscal policy continues having a restraining effect on the domestic demand.

Taking into account the aforementioned developments, the CBA Board thinks that the current level of monetary-loan policy is sufficiently promoting, therefore it finds appropriate to keep the current level of the refinancing rate. At the same time the Board states that under the predicted developments there will be a need for neutralization of monetary-loan terms aimed at implementing the inflation goal. As a result it is expected that the inflation will fluctuate in a lower range, stabilizing over a targeted 4% figure.

In case of deviation risks from the predicted scenario of economic development inflation, the CBA will clarify the monetary-loan policy directions by ensuring the price stability.

Edited and translated by Aneta Harutyunyan