Central Bank implementing its roadmap with gradual steps: Erkan

ANKARA

Türkiye’s Central Bank is implementing its roadmap designed to lower inflation with gradual and decisive steps, Hafize Gaye Erkan, its governor has said.

Since Erkan took the helm at the bank in June, the Central Bank has hiked its main policy rate, the one-week repo auction rate, by a cumulative 1,650 bps from 8.5 percent to 25 percent.

At its latest rate-setting meeting on Aug. 24 the bank delivered a larger-than-expected rate increase of 750 bps.

“We continue to implement our roadmap, which we shared with the public at the presentation of the Inflation Report, with gradual and decisive steps, in order to lay the groundwork for the start of disinflation process in a sustainable way in 2024,” Erkan said at a meeting with members of the Jewelry Exporters’ Association.

She recalled that the monetary tightening was launched in June, saying that: “We stressed that this process will be gradual, balanced and stable.”

In a statement released after the rate hike decision earlier this month, the bank said that monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.

Meanwhile, the Treasury and Finance Ministry has denied speculations suggesting that Türkiye is seeking support from the International Monetary Fund (IMF).

The ministry does not have an official invitation to the fund, officials from the ministry told state-run news agency Anadolu.

However, they noted that staff at the IMF’s technical team for Türkiye changed recently and new members joined the team.

As is customary in other countries, the new members of the team may make a technical and routine visit as they may want to get to know the country, meet with stakeholders and learn more about Türkiye’s economic policies, the ministry officials said.