Yerevan/Mediamax/. Central Bank of Armenia increased refinancing rate by 0.5 percentage points and established it at the level of 7%.

Mediamax was informed in the press service of the Armenian CB that inflation at the volume of 0.8% was registered in March, 2010, as compared to February, in conditions of which the index of 12 months’ inflation reduced by 0.6 percentage points, as compared to the previous months, making 8.8%.

Board of the Central Bank confirmed that, given positive tendencies for revival of the global economy, within the framework of the crisis prevention measures and in conditions of extensive monetary-credit and tax-budgetary policy the speeds of economy growth exceed the forecasted indices. As a result, the current inflation environment has formed mainly under the influence of the above-mentioned factors, which meets the directions, chosen by the CB.

According to the Board, in conditions of the formed macroeconomic environment and the increase of prices for basic utility services since April, inflation environment in forecasted future will be preserved and the tendencies of 12 months’ inflation reduction will continue.

According to the Board of the Armenian CB, toughening of monetary-credit conditions is consonant with the expected developments in inflation, directed at formation of positive real interest rates, which, simultaneously with crisis prevention measures of the government, will create real perquisites for return of inflation to the targeted corridor.