IMF tells Vanuatu central bank to tighten monetary policy
Excess liquidity starting to put pressure on prices
Staff at the International Monetary Fund have advised the Reserve Bank of Vanuatu to tighten monetary policy, given signs of “excess liquidity” and building inflation pressures.
In their latest Article IV consultation for the South Pacific island, IMF staff say the central bank should look to gradually increase reserve requirements in the coming months.
“Given the limited monetary policy transmission and the basket peg exchange regime, normalising its policy rate (rediscount rate) could also
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