Central Bank of the Republic of Turkey (CBRT) will apply its inflation-targeting regime decisively utilizing all of its tools, its chief said Friday.
Monetary policy decisions will be taken by maintaining the focus on price stability, Turkey’s central bank Governor Naci Ağbal said, a day after the bank hiked its key policy rate by 200 basis points in a bigger than expected move as it seeks to cool double-digit inflation.
Ağbal was speaking during a presentation to the Parliament’s Planning and Budget Commission regarding the central bank’s activities and monetary policy practices.
The governor suggested that lasting price stability would lead to economic growth by increasing investments and production.
Ağbal also explained that price stability meant inflation coming down to such a low level that it no longer plays a role in investment and consumption decisions.
“The upward risks associated with inflation require a firm and decisive stance in monetary policy,” the governor said.
“A tight monetary stance will be continued with determination until there are strong indicators of price stability and a permanent decline in inflation,” he said.
