Yerevan/Mediamax/. Board of the Central Bank (CB) of Armenia made a decision at its today’s session to leave the refinancing rate unchanged at the level of 7.25%.

Mediamax was informed in the press service of CB that in October, 2010, as compared to September, there was 1% inflation registered, as a result of which the index of 12 months of inflation made 9.1%, having increased by 0.5 percentage points.

CB Board stated that high level of 12 months’ inflation continues being conditioned by shocks in offer, in particular, by increase of prices for wheat, fruits and vegetables, the share of which in 12 months’ inflation makes 4.4 percentage points as of late October.

CB Board considers increase of inflationary risks in Armenian economy likely, stating that on the other hand, slow reestablishment of aggregate demand does not yet provoke inflationary pressures.

CB Board believes that in foreseeable prospect, the greatest influence on the inflation background will be put from outside. Nevertheless, the current level of refinancing rate is sufficient for neutralization of the secondary influence of inflation, conditioned by shocks in offer. In this context, CB believes that from the second half of 2011, 12 months’ inflation will return to the target range. At that, the Board does not rule out the necessity of further correction of the refinancing rate.