Turkish central bank comments on easing of Erdogan Business and Economy News

The head of the Turkish central bank said in a call to analysts on Thursday that he would assess the impact of current interest rate cuts in the first half of next year, an official told Bloomberg.

The Turkish central bank said in a call to analysts that in the first half of 2022 it would assess the impact of its current interest rate easing cycle, according to an official with direct knowledge of the subject.

Bank governor Sahap Kavcioglu’s statement sees a limited possibility for policy makers to make further rate cuts and the bank will consider suspending some benchmark cuts after the December meeting, the official said, not asking. will be identified because the notes were not public.

The governor’s comments contradicted President Recep Tayyip Erdogan, who pledged to keep lowering interest rates until the 2023 elections. for the first time in almost eight years of intervention in the foreign exchange market.

Erdogan says he will move forward with lower rates in Turkey’s economy

The pound changed slightly after the announcement of the Kavcioglu meeting and was 1.3% lower per dollar at 13.4527 at 13:38 in Istanbul.

The bank has been criticized by investors and analysts for reducing its one-week benchmark rate by 4 percentage points to 15% since September, while consumer inflation accelerated to almost four times the official target of 5%. The lira lost more than a quarter of its value last month alone, bringing its losses to almost 45% this year, more than any other major currency followed by Bloomberg.

Below are some of the highlights of Kavcioglu’s remarks during the call. The bank does not officially comment:

• Kavcioglu saw a slowdown in inflation as transient factors dissipated
• The governor mentioned unrealistic and unhealthy prices in the FX market
• The bank sees a growing desire to invest and create jobs
• The bank remains committed to accumulating reserves