The Central Bank of Armenia (CBA) has left the annual refinancing rate unchanged, 7.25%.

According to the report, 0.8% deflation was registered this June against May. The annual inflation was 5.8% - 0.5% lower as compared with the previous month.

The CBA Board believe that increasingly severe money-and-credit terms since the beginning of this year, falling international prices for raw materials and food, reducing influence of the expansionary monetary and fiscal policy implemented last year caused higher-rate reduction of annual inflation than expected. However, it does not exceed the highest targets.

According to the CBA Board, although the factors will remain in force in the immediate future, the gradually growing aggregate demand this year and prices for agricultural produce are expected to create inflationary pressure.