CBRT released summaries of the March meeting, which is believed to have caused President Naci Ağbal’s announcement from office, which increased by 200 basis points.
The noteworthy note of the note is the emphasis on the strong additional pre-loaded interest rate tightening, as well as drawing attention to loan growth. In the short report announced, “The recent upward trend in loan growth and rising import costs delay the gradual improvement in demand and cost factors.”
Ağbal’s MPC lists domestic demand conditions, cumulative cost effects, especially the exchange rate, rising international prices for food and other raw materials, and high levels of inflation expectations as factors affecting negatively the behavior of prices and the outlook for inflation. As medium-term risks, it emphasizes the supply restrictions that are evident in some sectors and the wage adjustments made and prices administered.
The expectation in the report is that the slowing effects of monetary tightening on loans and domestic demand will become more apparent. However, the recent upward trend in loan growth and rising import costs is said to delay the expected gradual improvement in demand and cost factors.
In light of these risk factors, the MPC decides on a strong anticipated additional monetary tightening to bring inflation expectations, price behavior and the medium-term inflation outlook closer to the target.
With the firing of Naci Ağbal and the compliance of Şahap Kavcıoğlu, we are now discussing when the interest rate cut will take place, given the inflation risks in the latest MPC rating.