Inflation statement from CBRT Chairman Kavcıoğlu

The CBRT held its first meeting with investors after the interest rate cut. During the meeting with the investors, Chairman Kavcıoğlu said, “We foresee that the temporary factors that are effective in the inflation outlook will lose their effect in Turkey as well.” used his statements.

President of the Central Bank of the Republic of Turkey (CBRT) Prof. Dr. Şahap Kavcıoğlu stated that the temporary factors that affect the inflation outlook will also lose their effect in Turkey, “While determining our monetary policy stance, we evaluated the analyzes aimed at decomposing the demand factors that monetary policy can affect, core inflation developments and the effects of supply shocks.” said.

Kavcıoğlu made evaluations within the scope of the investor meeting held with the videoconference method. Stating that the slowdown in the demand for durable goods, which is more sensitive to financing conditions, draws attention, Kavcıoğlu said that they see a strengthening in the demand for non-durable goods.

Emphasizing that the employment market has largely overcome the effects of the epidemic with the contribution of the service sector and the contribution of tourism, Kavcıoğlu said, “The current strong course in exports, the quantity-based slowdown in imports and the significant decline in gold imports support the ongoing improvement in the external balance. Temporary factors affecting the inflation outlook in Turkey. We anticipate that it will lose its impact in Turkey. While determining our monetary policy stance, we evaluated the analyzes aimed at decomposing the demand factors that monetary policy can affect, core inflation developments and the effects of supply shocks.” used his statements.

Pointing out that the reserves have reached 122 billion dollars from 85 billion dollars, Kavcıoğlu said:

“We will continue to increase our reserves resolutely. Domestic residents’ preference for TL in deposits remains strong. There was a remarkable turnaround from foreign currency (FX) deposits to Turkish lira (TL) deposits in March. The increase in deposits in the following months is reversed. Supports the currency substitution outlook positively, TL deposits increased by nearly 300 billion TL compared to the beginning of the year. FX deposits, on the other hand, showed a relatively limited increase when the parity effect is adjusted, despite the strong course in exports, the recovery in tourism and foreign currency and effective inflows into the system through our citizens living abroad. “

The next investor meeting of the CBRT is planned to be held on December 2, 2021.


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Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.

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