Armenia’s central bank leaves key interest rate unchanged
05.06.2012,
21:55
Armenia's Central Bank has decided today to leave its key interest rate unchanged at 8% citing the lack of upward momentum in inflation and signaled that it may ease policy if inflation slowed further. It said the country's 12-month inflation slowed to 0.5 percent from April as prices fell 1.3 percent on a monthly basis.
YEREVAN, June 5, /ARKA/. Armenia's Central Bank has decided today to leave its key interest rate unchanged at 8% citing the lack of upward momentum in inflation and signaled that it may ease policy if inflation slowed further. It said the country's 12-month inflation slowed to 0.5 percent from April as prices fell 1.3 percent on a monthly basis.
"There is much probability that the 12-month inflation will be within the confidence band of 4%±1.5 pp in the forecast horizon," the bank added.
“The Central Bank Board stated that deepening uncertainty over eurozone’s debt problems has strengthened USD in Russia and EU, Armenia’s major trade partners, which has impacted Armenia’s forex market depreciating its national currency, the dram, against the USD,’ the Central Bank said.
The dram lost 16.47 p.p. (4,2%) against USD over the last month falling from 391.87 to 408.34 drams.
Policymakers also ruled out any inflationary pressures from global food and raw material prices.
Last time the Central bank changed its key interest rate was in 2011 September when it was brought down from 8.55 to 8%. -0-
