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IMF resident representative Faisal Ahmed

Central bank mulls its inflation response

Cambodia's central bank is looking to tighten monetary policy to slow an inflation rate that could hit 8 to 9 percent this year, National Bank of Cambodia Director General and Spokeswoman Nguon Sokha said yesterday. Increases in commodity prices and petroleum has led to rising prices around the globe, and may cause further price inflation in Cambodia this year. The NBC is committed to maintaining price stability and Cambodia is not alone in the region in considering a tightened monetary policy, she said. Given Cambodia’s high degree of dollarisation – by most estimates more than 90 percent of the Kingdom’s currency – the central bank has relatively few policy instruments to use and the effectiveness of some its monetary policy options are limited. ...
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