As inflation rises, Myanmar’s Central Bank aims at monetary tightening
The Central Bank of Myanmar plans to tighten monetary policy to counter inflation, though at the request of banks has extended the deadline to meet a new reserve requirement ratio until January, said senior officials.
Amid signs of overheating, the Central Bank has been holding deposit auctions every fortnight since 2012 to reduce the currency in circulation, said deputy governor U Set Aung.
While monetary authorities elsewhere in the world are able to carry out open market operations to remove liquidity, Myanmar has no secondary bond market and monetary policy tools are limited, he said.
