OREANDA-NEWS. February 18, 2010. Meeting the Board of CBA decided to raise the Refinancing Rate of CBA by 0.50 pp to 6.00 percent, reported the press-centre of CBA.

Inflation in January 2010 was around 1.7 percent, while the 12-month inflation reached to 7.0%, exceeding the upper border of the target band by 1.5 pp.

Increased international prices of raw materials and basic food products, as well as gradual recovery of aggregate demand owing to expansionary fiscal policy make current inflationary environment to persist. Though in the forecast 12-mth horizon inflation will exceed the target band, determined by the previous year’s inflation developments, it will somewhat step down from its peak to be recorded in the first quarter of 2010.

By looking to tighten the monetary policy conditions gradually under the mentioned inflation trends, the Board aims to scale back deviation of inflation from the target in the forecast time horizon.