Central Bank of Armenia to raise refinancing rate

The Central Bank of Armenia decided today at a meeting to raise the
refinancing rate by 0.5 percentage points, bringing it to 7.75%, ARKA
reports, referring to the press service of the Central Bank of
Armenia.

During 2010, the refinancing rate increased fivefold, reaching 7.25%.
On 11 January 2011 the CBA decided to leave its refinancing rate
unchanged at a rate of 7.25%.

The report noted that in January 2011, inflation was recorded at 2.8%,
bringing the annual inflation rate to 10.6%, which contributed to an
increase in food prices of 8.8 percentage points.

According to the state budget of Armenia in 2011, inflation in the
country is expected to amount to 4 ± 1.5%.