Monetary inflation

Turkey's Central Bank chief on June 2 tried to quash speculation that the bank's Monetary Policy Committee (MPC) will cut interest rates earlier than investors expect.

The new governor told investors in remarks carried by Turkish media that market expectations of an impending rate cut were groundless.

Romania's economy will advance beyond expectations this year, between 6% and 9%, according to latest estimates by international credit rating agencies, Prime Minister Florin Citu said on Tuesday. "I say that everything that was more complicated has passed, it is true that there are these adjustments, after this time, and every economy resists more or less.

Turkey's central bank on April 15 held its main interest rate at 19 percent in the first decision since President Recep Tayyip Erdoğan sacked its former governor.

In its fourth Monetary Policy Committee (MPC) meeting under new Governor Şahap Kavcıoğlu, the bank made no changes to its benchmark policy rate - also known as the one-week repo rate- keeping it at 19%.

The Turkish Central Bank will ensure the strength and credibility of the Turkish lira with the determination of its fight against inflation, the bank's new governor said on March 30. 

"We will continue to use all the tools we have, independently and effectively," Şahap Kavcıoğlu said during an ordinary general assembly of bank officials.

The Turkish Central Bank's newly appointed governor met on March 24 with the general managers of banks and discussed a range of issues including inflation, monetary policy, global developments and the demands of the banking sector.

The Turkish Central Bank is focusing on ensuring permanent price stability while implementing a steady monetary policy, the bank's Governor Naci Ağbal said on March 5. 

"We will continue to take firm steps towards achieving price stability through a confidence-oriented monetary policy in the upcoming period," Ağbal wrote on the bank's blog.

Turkey's annual inflation rate is projected to rise to 15.45% in February, an Anadolu Agency survey found on Feb. 26. 

Turkey's annual inflation rate in January was 14.97%, up 0.37 percentage points from the previous month.

The Turkish Statistical Institute will announce February's consumer prices index on March 3 Wednesday.

The Turkish Central Bank on Feb. 18 kept the policy rate stable in line with market expectations.

The bank's policy rate - also known as the one-week repo rate - stands at 17 percent, the bank said in a statement, noting that additional monetary tightening would be delivered if needed.

The Central Bank of Turkey (CBRT) submitted an open letter to the government on Feb. 2 explaining why annual inflation was higher than the country's target range last year.

Turkey's annual inflation rate was 14.6% in December 2020, remaining outside the uncertainty band around the 5% target.

Turkey's Central Bank on Jan. 28 kept the country's year-end inflation forecasts unchanged at 9.4% this year and 7% next year.

The inflation rate will fluctuate between 7.3% and 11.5% through end of this year, the bank's governor told a virtual meeting held to release the bank's first quarterly inflation report in 2021.