Inflation expectations in Türkiye
Monetary policymakers now expect inflation to end 2023 at 65% and peak next May near 75%. Arkan also indicated that high interest rates will be her primary weapon in the inflation battle.
Under Erkan, who took over the governorship last June, the Turkish Central Bank raised the key interest rate more than four times before her appointment, to 35%.
Türkiye pledges to build cash reserves amid expectations of a slowdown in the economy
Despite this, Erkan’s pessimistic outlook means that officials will need to take tougher measures to tighten monetary policy as part of efforts to eliminate unconventional monetary policies undertaken under President Recep Tayyip Erdogan. Officials have already approved several measures to limit lending and withdraw excess liquidity from the market.
Erkan said on Thursday that the steps taken so far are beginning to bear fruit, citing strong demand for the Turkish lira and stable domestic demand as part of the factors that have already contained inflation.
2023-11-03 07:01:32
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