Lebanon's central bank aims to curb soaring inflation

Central bank governor says that he will seek to contain the expected 7 per cent inflation rate in 2011

Lebanon's Central Bank Governor said that he would seek to contain the expected 7 per cent inflation rate in 2011.
Quoted by the national news agency, Riad Salama said "The Bank of Lebanon plans to reduce inflation in order to achieve high growth rates in the economy."
Lebanon has managed to keep inflation below 5 per cent in 2010, but Salama predicted that inflation this year would reach up to 7 per cent. He added that the Central Bank intends to curb it through managing liquidity rather than raising interest rates.
Annualised consumer price inflation reached 5.8 per cent in February.
The Lebanese economy is expected to grow at 2.5 per cent in 2011, down from a previous forecasts at about 5 per cent due to political disagreements that delayed the formation putting its toll on the economy.
"The financial market is currently balanced and our aim to maintain stability in the lira exchange rate."Salama said
He also attributed the surge in inflation to the rise in global oil and food prices; not bad central banking practices.
However, he explained that "the rate of inflation in Lebanon remains less than that in countries such as Turkey and Brazil."