Central banks in the Middle East, Central Asia and the Caucasus need stronger protection from political pressure and government financing demands to keep inflation in check, an International Monetary Fund paper said on Tuesday, as the Middle East war revives price risks across vulnerable economies.
The paper, prepared by IMF staff, does not analyse the U.S.-Israeli war with Iran directly, but its findings come as higher energy costs, food price risks and fiscal pressures again test central banks in a region where some governments have limited room to shield households from rising prices.
Source : reuters