Inflation targeting

New Central Bank Governor Fatih Karahan has said that the bank will maintain its tight monetary stance until inflation falls to levels consistent with its target, while the bank has kept its inflation targets for 2024 and 2025 unchanged.

Two US Federal Reserve officials indicated Wednesday that the nation's central bank is on track to tackle inflation, but that it is still too soon to begin lowering interest rates.

The Central Bank of Türkiye has hiked its key interest rate by another 250 basis points to 45 percent, also signaling an end to its aggressive tightening cycle.

The targets in the Medium-Term Program (MTP) announced by the government after the elections are realistic, says Alpaslan Çakar, president of the Banks Association of Türkiye, adding that there is a correlation between all the figures.

The Central Bank of Türkiye has increased the key interest rate for a seventh consecutive month but said it is nearing the end of the monetary tightening cycle.

As widely expected, the bank hiked the policy rate - the one-week repo auction rate - by 250 basis points to 42.5 percent at the Monetary Policy Committee's last meeting of 2023 on Dec. 21.

The Central Bank's Monetary Policy Committee (MPC) is set to convene for the last rate-setting meeting of 2023 on Dec. 21.

The bank is widely expected to increase its main policy rate - the one-week repo auction rate - from the current 40 percent to 42.5 percent.

Monetary and fiscal policies will be used in the fight against inflation, according to the statement released after the Economy Coordination Board (ECB) meeting.

The board, chaired by Vice President Cevdet Yılmaz, convened on Oct. 30.

Traders in markets are looking ahead to the Federal Reserve's summer conference for signs of whether the U.S. central bank thinks inflation is under control or more interest rate hikes are needed to cool inflation.

Fed officials have used the Jackson Hole, Wyoming, conference in previous years to indicate changes in policy direction.

The government aims to bring the inflation rate to down to single digits in 2026, Vice President Cevdet Yılmaz has said, reiterating that the new medium-term program (MTP) will be unveiled in September.

A US central bank official has said that more interest rate hikes "will likely be needed" to bring inflation down further, shortly after policymakers lifted rates to the highest level since 2001.