Central Bank Governor Kavcıoğlu: ‘The interest rate will be lowered immediately’ prejudice is not true

President Shihab Kavcioglu of the Central Bank of the Republic of Turkey, in April, will be the first interest rate decision under the presidency or will take place in the months after the Monetary Policy Committee (MPC) meeting on “the just prejudice the interest rates to download “he said towards the finding.

Responding to Bloomberg’s questions in writing, Kavcıoğlu assessed that “I do not find a biased approach that immediately cuts interest rates in April or the following months.”

Kavcıoğlu said: “In the new period, we will continue to make our decisions with an understanding of institutional monetary policy in a way that ensures the permanence of the decline in inflation,” Kavcıoğlu said.


Kavcıoğlu, who gave an interview for the first time after taking office, stated that the Central Bank is strictly committed to the 5 percent inflation target. Kavcıoğlu said: “I am aware of how important this is for sustainable growth. When determining the stance of monetary policy, we will take into account global capital flows, real returns from similar countries, and portfolio preferences of residents together with actual and expected inflation, “he said.

Noting that the Central Bank has the independence of the tools by law to use the tools at its disposal to reduce inflation permanently, Kavcıoğlu said: “Our Central Bank will continue to use monetary policy tools independently under changing global conditions. and in light of domestic macroeconomic developments, especially the inflation outlook, “he said.


Answering the question about the use of reserves to support the Turkish lira, Kavcıoğlu made the assessment that in the next period, the Central Bank will adhere to the floating exchange rate regime as indicated in the text of the Monetary and Exchange Policy , and the exchange rates will be formed according to the balance of supply and demand under free market conditions.

When asked if the CBRT will continue to apply a single policy rate, Kavcıoğlu said: “We will maintain the operational framework of monetary policy, the one-week buyback rate will remain our main policy tool in terms of monetary policy. We see that the simplified operational monetary policy framework strengthens the transmission mechanism and allows the communication of decisions and practices in a simpler and clearer way ”.

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