Money & Bank

 

Armenia’s central bank lowers refinancing rate by 0,25%, setting at 5,75%
/Jan 29/ArmenPress.am/

YEREVAN, JANUARY 29, ARMENPRESS. The Board of the Central Bank of Armenia has made a decision at its January 29 session to lower the refinancing rate by 0,25% – setting it at 5,75%, the cenbank said in a press release.

It said that a 1,5% inflation was recorded in December of 2018, and the 12-months inflation totaled 1,8% – the prices of seasonal goods were formed in relatively low levels, and the normal inflation decreased to some extent. As a result, the low inflation environment will be maintained during the coming months and the 12-months inflation will be developed at the lower level of the confidence band’s lower part, the cenbank estimates.

Global economic growth trends show certain weakening signs in both leading and developing countries, while central banks of leading countries continue tightening monetary policies.   As a result, weakening trends of inflation environment are maintained in international markets of main goods, proceeding from which the Central Bank estimates that no inflation pressures are expected from the foreign sector in the coming months.

The CB board recorded that the last economic activity of 2018 continues being weak, while the year’s economic growth is expected in the range of 5,0%.

The board assessed that the low inflation is partly of structural nature – associated with long-term changes of economic and state policy, which also contributes to maintenance of purchasing power of revenues and anchoring the inflationary expectations in the country. 

It is expected for the inflation to be still running below the lower part of the confidence band and stabilizing around the 4% value at the end of forecast horizon.  
 

Armenian economist praises Central Bank for cutting key rate
/Jan 30/ARKA/

YEREVAN – An Armenian economist Tatul Manaseryan praised today the country’s Central Bank for cutting the refinancing rate by 0.25% percentage points, saying the move is a message for Armenian business community to invest in the home economy.
The Central Bank cut the refinancing rate in the first revision of the key indicator on January 29 over the last 24 months. 
Manaseryan described the Central Bank as a disciplined institution that conducts a proper personnel policy. He said the move makes possible borrowing money at a lower interest rate and investing in the domestic economy. 
‘When the economy is in a difficult situation, the Central Bank fulfills its role and promotes growth,” said Manaseryan.
According to him, besides the Central Bank, the ministries of economic development and investment and agriculture and the State Revenue Committee should be responsible for managing the inflation. They must work together and coordinate their actions.
According to the economist, a 5% growth is insufficient for Armenia, since the country has money resources and needs to capitalize them. In his words, the 60% growth in the import of capital goods is a good opportunity to retool the economy and increase competitiveness.

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