CBA to switch to inflation targeting regime
By Trend
The Central Bank of Azerbaijan (CBA) will switch to an inflation targeting regime in the medium term, Alim Guliyev, first deputy chairman of the CBA, told Trend on September 22.
He said this will be a logical continuation of transition to the floating exchange rate for the Azerbaijani manat.
“When speaking of the medium term, a period of 3-5 years is meant,” Guliyev noted.
Many experts agree that during global crisis, inflation targeting regime has advantage over other monetary policy regimes due to its greater stability. Inflation targeting can reduce economic volatility.
Guliyev further added that the CBA has prepared program reforms to improve the monetary transmission mechanism in the country.
Guliyev noted that the program is being discussed at Azerbaijan’s Financial Stability Board and after its adoption, the work on formation of an effective monetary market in the country will be completed.
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