Azerbaijani media, citing the announcement of IMF mission to Azerbaijan official Raja Al Marzug, reports that 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 mission began its work on November 8.
“Tools for pursuing the policy are limited, so strengthening the transmission mechanism will help to control the volatility of inflation in the long run,” said Al Marzugi, adding “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”.