Turkey’s Central Bank Cuts Interest Rates to 9% After Inflation Reached 85.5%

98
SHARE

“The effects of high global inflation on inflation expectations and international financial markets are closely monitored. Moreover, central banks in advanced economies emphasize that the rise in inflation may last longer than previously anticipated due to high level of energy prices, imbalances between supply and demand, and rigidities in labor markets,” it added.

The CBRT is undergoing a review of its policy framework, focusing on the “liraization” of its financial system and said in its report Thursday that it would “continue to use all available instruments” within the framework of this strategy until “strong indicators point to a permanent fall inflation and the medium-term 5 percent target is achieved.”

“Stability in the general price level will foster macroeconomic stability and financial stability through the fall in country risk premium, continuation of the reversal in currency substitution and the upward trend in foreign exchange reserves, and durable decline in financing costs,” the CBRT said.