TEHRAN, Iran, June 6. The Central Bank of Iran is seeking to control high inflation rate by boosting government finances and bank discipline, said a faculty member of Kharazmi University Vahid Shaghaghi Shahri, Trend reports citing IRNA.
"Liquidity growth is the root of inflation that happened due to lack of discipline in budget and banking system. The Central Bank of Iran is seeking to control liquidity growth by monetary policies," he said.
He pointed out that statistics show 38 percent liquidity growth in Iran which is higher than economic growth and the lack of balance in the budget and banking system led to high inflation rate.
The Central Bank of Iran is targeting to control inflation, improve banking system variables, reducing mandatory advances.