YEREVAN, APRIL 4, NOYAN TAPAN. At the April 3 sitting, the Central Bank of Armenia (CBA) Board made a decision to reduce the CBA refinancing interest rate by 0.25% to 4.5%, NT was informed from the CBA press service. It was noted that a 0.6% price fall was registered in Armenia in March on February 2007, as a result of which the 12-month inflation made 4.4%. This index is by 0.7% lower than the index forecast for the first quarter of 2007. In the opinion of the CBA Board, inflation pressures from the external sector have declined considerably, while the current tendencies in the economy (conditioned by development of the gross demand), have not formed a basis for an increase in inflation pressures. In this situation the CBA Board considers it realistic that inflation will be lower than 4% target inflation index. The CBA Board does not rule out further changes in interest rates if the current prospects of economic development remain.

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