Profile image
By CentralBankNews.info (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Armenia holds rate on weak inflation, but expects hikes

Tuesday, February 13, 2018 9:12
% of readers think this story is Fact. Add your two cents.

Headline: Bitcoin & Blockchain Searches Exceed Trump! Blockchain Stocks Are Next!

      Armenia’s central bank maintained its benchmark refinancing rate at 6.0 percent but repeated its guidance from late last year that there will be a need to gradually neutralize the stimulative monetary and credit conditions to meet its inflation target but inflationary pressures still remain weak and expectations have recently weakened.
      The Central Bank of Armenia (CBA) has maintained its rate since February 2017 after cutting it 12 times by a total of 450 basis points from 10.50 percent in August 2015. 
      Both in December and and November last year the CBA’s board warned it would necessary to gradually neutralize monetary stimulus in the near future so inflation reaches its target.
      And although domestic demand and lending is continuing to grow rapidly, the CBA said it still wants to maintain the current monetary stimulus to “ensure the sustainability of the recovery of demand,” especially as inflationary expectations had weakened “noticeably.”
      Armenia’s inflation rate rose slightly to 2.7 percent in January from 2.6 percent in December and the CBA expects weak inflationary pressures from the external sector as external demand improves.
       In December the central bank said it expected inflation to be in the lower limit of its tolerance range of 2.50 – 5.50 percent (around a 4.0 percent midpoint) by the end of 2017.
      In 2016 inflation fell by 1.1 percent as the former Soviet Republic, locked east of Turkey and west of Azerbaijan, was hit by Russia’s economic crises and a decline in remittances from abroad.
        Armenia’s economy slowed in the third quarter of last year to annual growth of 3.5 percent, down from 5.5 percent in the second quarter but the central bank said activity in the fourth quarter was “very high,” mainly due to growth in services and industry.
      After collapsing in November 2014, Armenia’s dram has been more stable in recent years and was trading at 482.4 to the U.S. dollar today, down 0.4 percent this year.

     www.CentralBankNews.info


        



Source: http://www.centralbanknews.info/2018/02/armenia-holds-rate-on-weak-inflation.html

We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.