CBA stimulate economy and curb inflationAugust 28, 2009 - 16:29 AMT PanARMENIAN.Net - Optimal refinancing interest rate ensures low inflation and high economic growth, finance minister of Armenia Tigran Davtyan told a press conference on Friday. According to him, Central Bank of Armenia continues the policy of reducing the refinancing rate, which is fully welcomed by the ministry of finance. "The process of reducing the refinancing rates continue, and it stimulates the economy. We would be happy if the central bank will continue reducing it, but the task of the central bank is not only in stimulating the economy, but also curbing the inflation level. Optimal refinancing rate ensures low inflation and high economic growth," he said. Nevertheless, according to the minister, positive trends observed recently shape the "cheap money". On August 11, 2009 the Central Bank of Armenia decided to reduce the refinancing rate by 0.25 percentage points to 5.25 per cent per annum. At the beginning of the year the refinancing rate was 8 per cent and was reduced six times since March 3, when the central bank announced a return to a floating rate policy and raised the refinancing rate by one percentage point to 7.75 per cent per annum. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | International cybercrime ringleaders arrested in Armenia, Ukraine Europol, Europe's crime agency, has arrested four ringleaders of several cybercrime networks that used botnets. Armenia skips CSTO Defense Ministers meeting A meeting of the Council of Defense Ministers of the Collective Security Treaty Organization countries began in Almaty. Armenian, Iranian foreigh policy chief talk over the phone The Foreign Minister of Armenia once again expressed condolences to his counterpart on the death of the President of Iran. Armenia, U.S. customs authorities to boost assistance with new deal The government has approved an agreement with the U.S. government on mutual assistance between the customs authorities. |