Yerevan, December 8 /Mediamax/. The International Monetary Fund (IMF) cautioned the Armenian government from frequent revisions of the ceiling of the planned inflation.

Mediamax reports that the IMF report following the Consultation with the Armenian government reads this.

The IMF Directors’ Board highly assessed the policy of the Central Bank of Armenia for its commitment to price stability and also underlined the importance of more effective policy coordination between the monetary and fiscal authorities in order to ensure low inflation and a competitive exchange rate.

The IMF stated that it supports the authorities’ maintenance of a flexible exchange rate regime, which has contributed to price stability. The Fund also welcomed the Central Bank’s policy of limiting foreign exchange market intervention.

The members of the IMF Director’s Board stated that “there is no clear evidence that the dram is currently overvalued” and emphasized that competitiveness concerns are best addressed “through forceful policies to raise productivity”, including by improving the business climate and spurring competition.