Central Bank of the Republic of Turkey (CBRT) says inflation will gradually descend

Mr. MURAT CETINKAYA, the President of the Central Bank of Turkey has commented that the effects of monetary policy on inflation will start to become more apparent in the upcoming period and they expect the inflation to go down gradually starting end of the year.

CETINKAYA explained that the double-digit levels in inflation observed in 2017 was due to the emergence of many different cost items starting from the middle of last year and stated that  the shock increases in currency and the rise in commodity prices at the beginning of the year had a negative impact on inflation expectations.

The President went on to say; “As the CBRT, we gave a strong policy response to prevent deterioration in pricing behavior, and we have significantly increased the predictability of the monetary policy in support of this process”.