During the January 11 sitting, the Board of the Central Bank of Armenia (CBA) decided to keep the refinancing rate at 7.25%.

1.8% inflation was recorded in November 2010, resulting in 9.4% annual inflation rate, the CBA press service reported.

The CBA Board stated that the high inflation rate is continuously reasoned by growth in prices for agricultural products and foodstuff at international market. 7.5% inflation in foodstuff was recorded in 2010. Specifically, growth in prices for fruits and vegetables, meat products, dairy products and eggs contribute to 5 percent annual inflation rate.

At the same time, according to the CBA Board, a decline in the country’s agriculture similar to the one in 2010 with further inflation pressures will hardly be recorded in 2011.

Taking into consideration the impacts of the credit-monetary policy on the gross demand, supply factors and displays of their secondary impact and uncertainties of processes in agriculture, the CBA Board considers toughening of the credit-monetary conditions to be possible in future.