Pressure On Central Bank

June 2007 | Risk Summary

One of many repercussions of the ongoing delays in the 2007 budget is that the government is relying on credits from the central bank to keep its operations ticking over. Effectively, the government is relying on the central bank to provide it with finance, in a context where inflation has risen ominously in the last couple of years. Once the budget is approved, the government will need to ensure that the liabilities it has clocked up in these dealings with the central bank are cancelled by an offsetting deposit, or inflation could begin to spiral out of

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