10 Feb 2015 18:05

Armenian central bank raises refinancing rate for third time in two months due to increased inflation

YEREVAN. Feb 10 (Interfax) - The Armenian central bank decided to raise its refinancing rate from 9.5% to 10.5% pa, the bank said in a statement.

This was done to ease domestic inflationary pressure, the statement says.

The central bank also lowered its Lombard repo rate to 14.5% from 17%.

The refinancing rate was raised from 8.5% to 9.5% on January 21. It had previously been raised to 8.5% from 6.75% in late December 2014.

The central bank said that in January 2015, the republic had 2.5% inflation, while consumer prices grew 4.3% year-on-year.

In 2014, inflation reached 4.6% in Armenia, surpassing the central bank's forecast of 3.2%. The 2015 state budget forecasts inflation at 4%.