Optimal refinancing interest rate ensures low inflation and high economic growth, finance minister of Armenia Tigran Davtyan told a press conference on Friday.

According to him, Central Bank of Armenia continues the policy of reducing the refinancing rate, which is fully welcomed by the ministry of finance. "The process of reducing the refinancing rates continue, and it stimulates the economy. We would be happy if the central bank will continue reducing it, but the task of the central bank is not only in stimulating the economy, but also curbing the inflation level. Optimal refinancing rate ensures low inflation and high economic growth," he said.

Nevertheless, according to the minister, positive trends observed recently shape the "cheap money".

On August 11, 2009 the Central Bank of Armenia decided to reduce the refinancing rate by 0.25 percentage points to 5.25 per cent per annum. At the beginning of the year the refinancing rate was 8 per cent and was reduced six times since March 3, when the central bank announced a return to a floating rate policy and raised the refinancing rate by one percentage point to 7.75 per cent per annum.