Tuesday, September 26, 2017

Armenia maintains rate, sees stable rate for some time

    Armenia's central bank left its benchmark refinancing rate at 6.0 percent for the fourth time in a row, saying it expects the current scenario to remain for some time, with the rate at this level continuing to improve aggregate demand and helping stabilizing inflation around its target.
    The Central Bank of Armenia (CBA) has maintained its rate since February after slashing the rate 12 times by a total of 450 basis points beginning in August 2015.
      Armenia's inflation rate was steady in August from July 0.9 percent, with CBA see little inflationary impact from the external sector.
      The CBA targets inflation of 2.50 - 5.50 percent around a 4.0 percent midpoint.
      The bank's country's council added economic growth in the first half of the year of an annual 6.0 percent topped expectations by 1 percentage point and activity in the third quarter remains high, driven by growth in industry and service sectors, compensating for a decline in agriculture and construction.
       It added domestic demand is recovering faster than expected, evidenced by high growth in lending, import growth and normal inflation.



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