“Since inflation is high in our country, monetary policy will remain tight for a while. It will go up to a level that will anchor inflation and will stay there for a while,” Simsek told a conference in Ankara.
After years of easy policy, the central bank pivoted in June and has since raised its key interest rate by 3,400 basis points to 42.5% to rein in inflation that neared 65% last month.
The bank said it will complete its tightening cycle as soon as possible.
Simsek, who was appointed in June to help lead the policy U-turn, said he expects lower inflation and economic growth this year, and a global transition to looser monetary policy.
Inflation is high but in line with Turkey’s medium-term programme, and it will fall, he added.
The ministry clarified that Simsek was referring to the global situation when discussing monetary policy.
To read the full article, Click Here