YEREVAN.- The Central Bank of Armenia (CBA) has decided to reduce the refinancing rate by 0.5% and set at 8.0%. 

This August Armenia registered a 0.6% deflation resulting in a 1.5% decrease of 12-month inflation as compared to the previous month.

The CBA board noted that at present foreign developments had neutral impact on the inflationary environment. However, there is still uncertainty about the future of the world economy due to a fundamental imbalance in the developed countries.

According to the Central Bank, easing of monetary conditions will enable to form inflation forecast within the permissible fluctuations at the same time creating additional impetus to increase economic activity.