Inflation will continue to rise until June, reflecting base effect, the government of Central Bank, Erdem Basci, said in a presentation.
Positive impact of tightening on inflation will be seen later, according to Basci who also expects domestic demand to lose momentum but exports to contribute to final demand. Loan growth has slowed as a result of tight monetary policies, macroprudential measures and weak capital flows, Basci said. The governor also expects a significant improvement in the current account deficit this year.
This week, the Central Bank said in the minutes of the last Monetary Policy Committee meeting there is a risk of a marked slowdown in economic activity. If this risk materialises, reserve requirements, reserve option mechanism and liquidity policies may be utilized, if needed, the Bank noted. The MPC also evaluated the possibility of paying interest to the portion of reserve requirements held in TRY, in the context of the normalization of monetary policy, the Bank said.
Turkish President Recep Tayyip Erdogan received a warm welcome from his Polish peer Andrzej Duda on October 17, as Warsaw said it supported Ankara’s formally ongoing bid to become a member of the ... more
Poland will skip no touchy topics in talks with President Recep Tayyip Erdogan, visiting Warsaw on October 17, the office of President Andrzej Duda said ahead of the visit by the Turkish leader, ... more
Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more