CBI may reconsider its policy if inflation remains high

CBI may reconsider its policy if inflation remains high
An adviser to the Central Bank of Iraq (CBI) on Tuesday said that it may reconsider its monetary policy if inflation rates continue to run high.

“The bank will not change its monetary policy at the time being as it attributes high inflation to the unexpected rise in foodstuff prices, which form 70 percent of consumer expenditure,” Madhhar Mohammed Saleh told Aswat al-Iraq news agency.

The rise in foodstuff prices in August, which hit 10.8 percent, was due to external factors, including desertification and drought, Saleh explained.

“If inflation index remains high, the CBI may change interest rates and exchange rates,” he added.

http://en.aswataliraq.info/?p=119318

“If inflation index remains high, the CBI may change interest rates and exchange rates,”


COOOOOOOOOL beans!!! what is interest rate at what around 7%?? so they can't lower interest rate much more...so only option is "change the bloody exchange rate"!!!

thats what me thinks also.......

Here's another one out today:

Source: Voices of Iraq - 23/09/2009


Central alludes to reconsider its policy of monetary inflation if it continues to be high current


Central bank adviser said the appearance of Mohammed Saleh, Tuesday, the Central may reconsider its policy, especially monetary and interest rate and exchange rate, if inflation indicators continued at high current.


Saleh added that the Central Bank "may reconsider its policy of cash if inflation indicators continued at high current, especially with regard to Bsari interest and exchange rates," stressing that the central "would not change its monetary policy as the current time is that the high rate of inflation was due to higher food prices shock, which constitute about 70% of the paragraphs of consumer prices. "


Saleh added that the "increase during the month of August, which reached 10,8% were due to external factors such as desertification, drought and its attendant suspended importation of certain agricultural products and the holy month of Ramadan and Eid al-Fitr" afterthought that "the situation if they remain on their current (high inflation index ), the Central may decide to change interest rates and exchange rate commensurate with the policy of reducing inflation, which is pursued by monetary policy. "