YEREVAN, AUGUST 3, ARMENPRESS. The Board of the Central Bank made a decision to raise the re-financing rate by 0,5 percentage points and set it at 7,0%, the Central Bank announced in a statement.

In June 2021 a 0,8% deflation was recorded against the 1,4% deflation of 2020’s same month, and the 12-months inflation increased and comprised 6,5%. The 12-months normal inflation continued accelerating and stood at 7,8% in the end of June.

Given the expected macroeconomic developments in the external sector and in the Armenian economy and related inflation impacts, the Board of the Central Bank finds it appropriate to continue raising the policy rate. At the same time the Board considers the need of possible stricter monetary conditions soon for eliminating the risks of accelerated inflation expectations parallel to increase in domestic demand. In these conditions it is expected that the 12-months inflation will be maintained in high levels and will then gradually decrease and stabilize around 4%.

Editing by Stepan Kocharyan