YEREVAN, MAY 5, NOYAN TAPAN. At the May 5 sitting, the Central Bank of Armenia (CBA) Board raised the refinancing rate by 0.25%, fixing it at 6.75%. NT was informed by the CBA press service that 1.1% inflation was registered in April on March 2008, as a result of which 12-month inflation made 10.7%, exceeding by about 4% the level in late 2007. The CBA Board stated that the high inflation environment in international food markets and the resultant pressures on domestic prices of food commodities continue, while the degree of uncertainty of further developments in the external environment continues to be high. Meanwhile, the secondary impacts of the increase of food prices have grown, increasing inflation pressure in non-food commodity and service markets and raising inflation expectations. The CBA Board is unanimous in its opinion that inflation pressures will continue in the near future. The gradual tightening of the monetary and credit conditions by the CBA aims to mitigate the secondary inflation impacts and expectations conditioned by external developments.

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