Monetary inflation

The sharp decline in the inflation rate will continue in coming months, Treasury and Finance Minister Nureddin Nebati has said, calling on businesses to support efforts to rein in inflation by freezing and reducing prices.

Finding the right monetary policy response to tackle soaring inflation is an "art," European Central Bank President Christine Lagarde has said.

"It is not a science," Lagarde said on June 29 at a panel at the ECB's annual central banking conference in Portugal.
"What we are doing there is an element of art," she said.

That policy also envisaged that goods and services produced in the country would become cheaper abroad because of the fall in wages. China entered its development process with a similar policy.

The Bank of Japan on June 17 stuck to its long-held monetary easing policy even as other central banks around the world hike interest rates to tame inflation.    

But it said it would "pay due attention" to foreign exchange markets, a rare comment that comes after the yen hit a 24-year low against the dollar.    

Fighting inflation will be the government's top priority in the coming period, Treasury and Finance Minister Nureddin Nebati said, reiterating that effectively using monetary and macroprudential policies will be crucial to curb price increases.

Government policies on top of skyrocketing inflation have only sent real estate prices in Turkey even higher, experts say, leaving many ordinary Turks locked out.

Treasury and Finance Minister Nureddin Nebati has reiterated the government's commitment to bring inflation under control and take necessary steps.

The Central Bank of Turkey announced at a briefing on Thursday that it has revised its inflation forecasts and now expects them to grow by as much as 42.8% by the end of 2022, compared to a previous inflation forecast of 23.2%.

The government will be able to oversee price moves instantly with a new digital system, according to a decision taken at the Economy Coordination Board meeting on April 13.

The recent development in the global supply chains and the effects of rising commodity prices on the inflation rates were evaluated at the meeting chaired by Vice President Fuat Oktay, according to a statement.

He again promised low inflation, saying “we are in the process of making Turkey one of the top 10 economies in the world”