Yerevan, December 11 /Mediamax/. International Monetary Fund (IMF) urged Armenia to take steps to curb price pressures, while the currency will probably continue to appreciate.

Mediamax reports that the regular review of Armenia’s poverty-reduction facility program reads this.

“Monetary policy will need to be tightened in light of rising inflationary risks,” the International Monetary Fund noted.

According to the forecasts, consumer inflation is projected to average 6.3 percent next year, up from 4.3 percent in 2007.

IMF stated that it is against lift of inflation target to 4 percent from 3 percent by the Central bank of Armenia.

“A firm commitment to a medium-term inflation target will be critical for anchoring price expectations and building credibility in the transition to full-fledged inflation targeting,” the IMF said.

The report reads that Armenian dram was also expected to continue to advance against the dollar due to persistent foreign-exchange inflows, which may harm the country’s export competitiveness.