IMF: Azerbaijan should tighten monetary policy
The Central Bank of Azerbaijan (CBA) should tighten its monetary policy in the event of demand pressures due to increasing government spending and accelerating credit growth, the International Monetary Fund (IMF) mission chief for Azerbaijan Raja Almarzoqi said at a press conference on Tuesday.
"Tools for pursuing the policy are limited, so strengthening the transmission mechanism will help to control the volatility of inflation in the long run," Almarzoqi said.
He underscored that the IMF and the Central Bank have agreed on the importance of the transition to a flexible exchange rate, but not in the short term.
"It is the medium-and long-term plans. The Central Bank has already received technical assistance in this area. The final report of the mission, which dealt with the technical assistance, will soon be ready and handed over to the authorities," Almarzoqi said.
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