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Turkey cenbank chief says policy is tight enough; lira slides

ISTANBUL, Sept 8 (Reuters) – Turkish Central Bank Governor Sahap Kavcioglu said on Wednesday the current 19% policy rate is tight enough to bring inflation down in the fourth quarter, suggesting monetary easing is on the way and setting off a plunge in the lira.

Speaking at a German-Turkish Chamber of Trade and Industry meeting, he stressed that the core inflation measures – which are lower than headline inflation – are increasingly important as the bank sets policy amid fallout from the pandemic.

“I can say that Turkey’s monetary policy stance is tight enough to decrease inflation despite rising global inflation,” Kavcioglu said.

Annual inflation jumped more than expected to 19.25% in August, above the central bank’s policy rate and its highest level in more than two years, maintaining pressure for tight monetary policy. 

September 8, 2021 – REUTERS

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