After the "alternative" policy of "interest rate cutting anti -inflation" has rare, the Turkish central bank is slowly promoting the normalization of monetary policy.
On July 20, the Turkish central bank announced that the benchmark interest rate raised the benchmark rate from 15%to 250 basis points to 17.5%.Earlier, the Turkish central bank announced in June that the benchmark interest rate raised the benchmark interest rate from 8.5%to 15%to 15%, the first time to raise interest rates since March 2021.
The Turkish central bank stated in a statement that the Monetary Policy Committee decided to continue to implement the currency tightening policy to reduce inflation rate, stabilize inflation expectations, and control prices to rise as soon as possible.The mid -term goal of the Turkish monetary policy is to reduce the inflation rate to 5%, and to create the corresponding currency and financial environment for this.The currency tightening policy will be strengthened in a timely and gradual need to be strengthened until the future inflation expectations will be obviously changed.
However, Turkish inflation has not yet declined smoothly.The annual rate of CPI in July rose from 38.21%in June to 47.83%, ending the decline of eight consecutive months. In addition, the CPI increased by 9.49%month -on -month, the highest monthly increase since 1997.The Turkish central bank also raised inflation from 22.3%to 58%by the end of 2023, and it is expected that inflation will reach 60%of the peak in the second quarter of next year.The new governor of the Turkish Central Bank Harfisza Gei Elkan also admits that Turkey's inflation rate will rise in the short term due to the recent exchange rates and financial measures implemented in the near future.
In June of this year, the Turkish government has successively appointed Muhammad Himshek and Harfiza Gei Elkan as the Financial Minister and the Central Bank President.The market once believed that Turkey would quickly get rid of the "alternative" economic policy, but then Turkish officials said that the tightening cycle will still be "progressive".
From September 2021 to February 2023, the Turkish Central Bank reduced interest rates, and the benchmark interest rate dropped from 19%to 8.5%.Turkish currency lira fell about 44%in 2021, and fell about 30%in 2022. This year has fallen by about 30%, becoming one of the worst emerging market currencies.
