Central bank to maintain cautious policy next year.

Central bank to maintain cautious policy next year. The central bank asserted that it will maintain its cautious stance on monetary policy next year. The bank has unveiled its monetary and exchange rate policy framework; the end-year CPI inflation target has been set at 4% for the next three years. The bank’s inflation target for this year was initially set at %5 however as of November, the annual inflation rate stands at 9.86%. The government has not revised the target despite the monetary authority has already said that it expected the end-year inflation to be between 9.2-10.6%. The central bank will continue to monitor public sector expenditures in the period ahead. Floating exchange rate policy will remain in place next year, and the central bank will continue to hold forex purchase auctions. The central bank said that it did not have any target for exchange rate and it would not use exchange rate as monetary policy tool.