At its sitting today, the Board of the Central Bank of Armenia (CBA) decided to reduce the annual refinancing rate by 0.25% down to 5%. The CBA press service told NEWS.am that the decision is in harmony with the trends on the financial market and, without threatening the price stability, contributes to economic revival.

The world economy continued showing signs of improvement accompanied by a gradual rise in the prices for raw materials and some other product items. Under the circumstances, despite further downward trends in the aggregate demand, domestic markets did not register any deflation.

The CBA reports that a deflation rate of 0.4% was registered this August as compared with this July. As a result, an annual inflation rate reached 3.5%.

This is the seventh reduction of the annual refinancing rate since the CBA returned to a floating rate policy: the rte was first reduced down to 7.5%. On May 12, the CBA reduced the annual refinancing rate down to 7.25%, and on May 22, down to 6.25%.