CBRT Governor Said, “We are committed to our monetary policy”

In his speech at the investor meetings, CBRT Governor Şahap Kavcıoğlu said, "We are committed to our monetary policy."

CBRT (Central Bank of the Republic of Turkey) Governor Şahap Kavcıoğlu met with economists at a videoconference meeting within the scope of investor meetings. At the meeting, it was emphasized that the monetary policy was strictly adhered to, and that the acceleration of vaccination by spreading to the general population positively affected the economic activity, employment and current account balance. At the meeting, it was stated that vaccination contributed to the revival of services and tourism sectors that were negatively affected by the epidemic, and it was noted that this situation allowed economic activity to be maintained with a more balanced composition in terms of goods and services, and that the developments in services would also positively affect employment. At the meeting, which drew attention to the improvement in the current account balance, following statements were made: "Demand conditions, supply constraints in some sectors and high levels of inflation expectations continue to pose risks on pricing behavior and the inflation outlook. We have begun to see the slowing effects of monetary tightening on loans and domestic demand. In the short term, with the impact of various supply and demand-side factors, primarily commodity prices, we expect the volatility in inflation to be temporary. We will monitor the effects of factors such as import prices, exchange rate developments, managed-directed price adjustments and opening up on inflation. Loans are moderate with the effect of monetary tightening. " At the meeting, it was emphasized that the current tight stance in monetary policy will be maintained decisively until a significant decrease in inflation is achieved. Kavcıoğlu said, "We maintain our expectation that the significant decrease in the forecast path of the April Inflation Report will be at the end of the third quarter and the beginning of the fourth quarter. This outlook is consistent with our determination to keep the policy rate above inflation throughout the disinflation process and should be interpreted as such."