CBA to consider easing monetary policy
18.05.2012,
15:39
Armenia’s Central Bank said today it will consider easing its monetary policy if domestic economy is progressing in line with its baseline scenario and the 12-month inflation will be at the lower border of the confidence band of 4%±1.5 pp in the forecast horizon.
YEREVAN, May 18. /ARKA/. Armenia’s Central Bank said today it will consider easing its monetary policy if domestic economy is progressing in line with its baseline scenario and the 12-month inflation will be at the lower border of the confidence band of 4%±1.5 pp in the forecast horizon.
According to a Central Bank press release, the move is caused by a 0.6 percent deflation in April from March, resulting in a 0.3 p.p inflation drop compared with the previous month to 1.9%, and thus remaining within the band of 4± 1,5%. The Central Bank said both global and domestic economies are progressing in line with its baseline scenario outlined in the first quarter.
The Central Bank also ruled out any inflationary pressures from global food and raw material prices, despite changing prices of oil and wheat.
"Domestic economic developments do not portend an expanding of the inflation environment: the growth of private spending and impact of the fiscal policy are non-inflationary," the Central Bank said.
On May 8 the Board of the Central Bank maintained the refinancing rate at 8 percent. -0-
