Central Bank of Armenia doesn’t seek to reach planned inflation in 2010 at any price

Central Bank of Armenia doesn’t seek to reach planned inflation in 2010 at any price
ARKA, 12.03.2010

The Central Bank of Armenia doesn’t seek to reach the planned inflation indicator in 2010 at any price, Arthur Stepanyan, chief of Armenian central bank’s monetary policy unit, said Thursday at a press conference.

In its monetary policy program for 2010, the Central Bank of Armenia planned 7.4% inflation.

Stepanyan said that the central bank planned this indicator without taking into account its steps.

“Our steps can lessen inflation to the indicator recorded in Armenia in late 2009 – 6 to 7%.”

According to National Statistical Service of Armenia, consumer prices rose 6.5% in Dec 2009, compared with the same month of the previous year.

Stepanyan said that Armenian economy is gradually recovering now after the 2009 downturn.

He thinks it would be wrong to reach the targeted inflation rate by taking sharp steps that could hobble economic development.

Stepanyan said that the central bank pursued a reasonable policy last year and intends to continue it.

“This is necessary to stabilize economic growth, since stability of inflation, even taking into account certain volatility, contributes a great deal to stable economic growth. Our measures are aimed at this.”

The chief of the central bank’s division said that the regulator pursues long-term goals.

“If 6% inflation is recorded this year instead of the planned 4-5.5%, but economic growth speeds up instead, it will be more effective and better to all than intention to reach 4% inflation at any price,” he said. “Believe me, we can reach this level, but at the account of economic growth.”

In the 2010 state budget, Armenian government planned 1.2% economic growth. --0--