Policy is tight enough, says Turkish Central Bank chief
ANKARA
Turkish Central Bank Governor Şahap Kavcıoğlu told investors on Oct. 7 that policy was sufficiently tight to tackle inflation and that he expected core price measures to fall in the short term.
The bank cut its key interest rate by 100 basis points to 18 percent.
Kavcıoğlu provided dovish signals on the call with local investors but gave no clear indication whether he sees more policy easing ahead or how much, Reuters cited sources requesting anonymity.
He added that the bank does not only look at core inflation measures in determining monetary policy.
Last month, Turkey’s headline inflation rose to 19.58 percent, while its core inflation stood at 16.98 percent.
Core inflation indicators were trending downward in the near term, while temporary effects keeping prices elevated will fade, the governor said.
Kavcıoğlu also said on the call that policy would ensure disinflation as soon as possible and take into account possible risks.
He noted that the bank had been implementing a tight policy for a year and that the last month’s rate cut did not change that.
The bank’s next Monetary Policy Committee meeting will take place on Oct. 21.
