Monetary inflation

President Recep Tayyip Erdoğan has given his "full" support to the new economic policy, Treasury and Finance Minister Mehmet Şimşek has said.

Şimşek and Central Bank Governor Hafize Gaye Erkan met with journalists at a briefing on the government's new medium-term program in the capital Ankara.

The Central Bank raised its end-2023 inflation forecast to 58 percent from 22.3 percent in its previous report, its governor, Hafize Gaye Erkan, said on July 27, vowing to continue the bank's gradual monetary tightening.

Members of the Central Bank's Monetary Policy Committee will meet on July 20 to decide about its key interest rate.

At the MPC's June meeting, the policy rate - the one-week repo auction rate - was lifted from 8.5 percent to 15 percent. This was the first rate hike since March 2021.

Across the developed world, we are hearing the argument that high costs are "profit inflation," meaning that rising prices stem mainly from rising profit margins. This is confirmed by reputable economists at multinational banks like UBS and others, by the chief economist of the European Central Bank, Philip Lane, and by its president, Christine Lagarde.

Treasury and Finance Minister Mehmet Şimşek has revealed that the government's economy program will focus on three main factors with an aim to fight inflation and bring financial stability to the country.

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 25 bp to 6.25 pct.

It also raised the deposit and lending facilities rates to 5 pct and 7.5 pct, respectively.

As widely expected, Türkiye's Central Bank has once again kept its policy rate - one-week repo auction rate- constant at 8.5 percent. 

Türkiye's Central Bank has kept its inflation projections for end-2023 and end-2024 unchanged at 22.3 percent and 8.8 percent, respectively.

The Bank of Japan announced a review of its longstanding monetary easing measures on April 28 but said it would maintain them for the time being in the first policy decision under new governor Kazuo Ueda.

BELGRADE - According to an Ipsos survey, the Serbian financial sector expects inflation to be 8 pct in March 2024, unchanged relative to the previous six surveys, the National Bank of Serbia (NBS) has said.

In a statement, the central bank said an April Bloomberg survey reported lower one-year-ahead expected inflation (7.0 pct).