Yerevan, July 4 /Mediamax/. The Board of the Central Bank of Armenia increased the CB refinancing rate for 0.25 percent-points, establishing it at the level of 4.75%.

As Mediamax was told in the press service of the Armenian Central Bank, the corresponding decision was made by the CB Board during its session on July 3.

In June 2007, as compared to May, there was 0.3% deflation registered. The index of inflation in the course of one year made 4.8% - 0.8 percent-points higher than the level, planned for the second quarter.

The CB Board noted that the inner inflation pressures were mild, despite the possible increase of inflation pressure in the second quarter as a result of large-scale budget expenditures.

The external inflation pressures on the whole were characterized by the growth of international prices for grain, the expectations concerning the further trends of which are not clear.

“In the given situation, the aim of the money-credit policy is to soften the inflation expectations and to preserve the inflation at the planned level”, the CB press service noted.