During the March 4 sitting, the Board of the Central Bank of Armenia (CBA) increased the refinancing rate by 0.5% to bring it to 8.25%.

The Board is concerned over the expansion of the inflation environment that is conditioned by the current developments at global food and raw materials markets, as well as maintained high prices as a result of reduction in supply of agricultural products in 2010, the CBA press service reported.

The Board believes that gradual toughening of the monetary policy and assistance of other state structures will allow bringing the inflation rate to the target corridor in the first half of 2011.