YEREVAN, DECEMBER 6, NOYAN TAPAN. At the December 5 sitting, the Central Bank of Armenia (CBA) Board left the CBA refinancing interest rate unchanged - 4.75%, NT was informed from the CBA press service. According to the CBA Board, although the inflation pressures coming from the external sector and related to high international prices of power bearing substances and some other goods (particularly granulated sugar) formed this year still remain, inflation pressures expected to come from this sector in the next 12 months will be milder. A high economic growth continues, mainly in the construction and service sectors. The expected increase in the population's incomes due to the economic development, combined with growing remittances keep moderate inflation pressures. At the same time, under conditions of the continuing dramization of the economy and the seasonal increase in demand for the Armenian dram at the end of the year, the CBA's meeting this demand by purchasing foreign currency will cause a liquidity surplus. The CBA Board takes the view that neutralization of this suplus is possible at the current level of the interest rate. If the current prospects of economic development continue, the CBA Board does not rule out that the interest rate will be changed in the coming months.

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