Central Bank promises to scotch inflation
"Armenia will be able to scotch inflation in the second half of 2011," Arthur Stepanyan, Head of the Monetary Policy Department at the Central Bank of Armenia (CBA), told a news conference on February 7.
According to the CBA official, an inflation rate forecast issued by the Central Bank included no changes in gas prices as no official statement ha sbeen made with respect to new tariffs.
Before summarizing the monetary policy of 2011, Stepanyan referred to the trends of 2010 which determined the prices in 2011.
The inflation rate of 9.4% will continue in the first quarter of 2011. The price hike is caused by the rise in global food prices which has totaled 40%).
Arthur Stepanyan states that 7,5% of inflation is due to the increase of domestic products prices. In 2010, the decline in agricultural production reached 13%.
For the end of 2011 the Central Bank forecasts agricultural growth of 7-9%, which according to the CBA representative, will mitigate inflation.
Arthur Stepayan acknowledged that the Central Bank occasionally intervenes and regulates the floating rate of the Armenian drama.
"With our interference, we aim to smooth the fluctuations caused by seasonal streams. We do not intend to maintain the rate of the currency. We are clearing the way for transiting to the fixed rate and repulsing speculative attacks in the market," he said.
