Consume inflation in Azerbaijan may become a two-digit number by the end of 2006, reportedly said Vitaly Kramarenko, head of IMFs mission for Middle East and Central Asia. Trend reports quoting Kramarenko that National Bank should implement a flexible currency and percentage policy and use sterilization tools in full. In this case, taking governments aid into consideration, the inflation rate might close two-digit number expression.
В"Inflation forecasts also depend on how fast governmental expenses and other factors are accounted for. It is important for NBA to possess some flexibility and instrumental independence and have some help from the governmentВ", - Kramarenko said.
Kramarenko opines that governmenta growing revenues from oil lead to the necessity in currency sale in local market. In this respect it comes necessary to limit expenses to achieve the goals on inflation rates. The inflation problem is its uncertainty, as well as expenses and external impacts like rate variation, industrial resource prices, capital flows, etc.
By Kramarenkos words, the government, while making reference to inhibition of inflation rate to 5-6%, is adhering to some different position. Governmental officials state monetary-credit indices allow taking anti-0inflqation measures later. The government is planning to raise emission of short-term notes and bonds to mitigate risks.
Unless these measures slow inflation down, the government will address IMF for consultations, - Kramarenko said.