CBA Board leaves refinancing rate unchanged
YEREVAN, DECEMBER 10, ARMENPRESS. The Board of the Central Bank of Armenia (CBA) today made a decision to keep the refinancing rate unchanged, 5.5%, the CBA told Armenpress.
In November 2019 1.1% inflation was registered against the 1.0% of November 2018, as a result of which the 12-month inflation almost remained unchanged, comprising 1.0% by the end of the month.
In the external sector the economic uncertainties reduced to some extent, therefore, the low rates of global economy growth are being maintained which is expressed by the maintenance of weak global demand and low inflationary environment in international commodity markets. The CBA Board states that no major impacts from the external sector on the inflationary environment are expected.
The Board records that in the third quarter the economic activity surpassed the predicted level which will be kept also in the fourth quarter mainly due to the services field. The domestic demand also remains high conditioned with the growth in private consumption. Although the impact of the fiscal policy on the gross demand still is restraining, the fiscal policy’s impact is expected to be expansionary in the fourth quarter and the next year.
Given the actual and expected developments in the foreign and Armenia’s economies, as well as continuing to give preference to the gradual recovery of inflation, the CBA Board considers it appropriate to keep the current rate of monetary-loan terms, by keeping unchanged the refinancing rate.
Edited and translated by Aneta Harutyunyan