NBA planned structural measures within anti-inflation moves in 2006
The National Bank of Azerbaijan (NBA) planned a number of structural steps within anti-inflation measures in 2006. Their necessity NBA sees in regard to the high specific weight of the non-monetary factors of the inflation growth tempos, Trend reports citing the NBA statement on the major lines of the monetary policy. According to the analyses conducted, last year only 40% of the growth was provided on the account of the monetary factors. The non-monetary factors reflect shortcomings in the competitiveness and impacts of administratively regulated prices.
For resolving the structural problems NBA proposes to liberalize the capital taking out regime from the country by permitting the physical and legal entities to place their investments in high-rating foreign financial assets. For non-admission of the Dutch syndrome the main task is to be acceleration of the growth tempos in the non-oil sector. Diversification of the economy, ensure of the two-digit growth in the non-oil sector, resolving of the unemployment problems and creating new jobs, implementation of social programs is needed in this regard.
NBA, in its turn, plans to enhance control for money supply by expanding the notes emission volumes.
The average annual inflation in November was 9,8%, and the basic inflation 7,5%.