[ad_1]
The Central Bank is meeting the Monetary Policy Committee for the second time this year. The decision on the interest rate and the decision text to be announced after the PPK meeting will be in the focus of the markets.
Naci Ağbal, who replaced Murat Uysal in November, displayed a market-friendly approach with his aggressive messages and a determined stance on tight monetary policy, while exchange rates fell sharply during his 4-month tenure.
While the CBRT, under Ağbal’s leadership, lowered the policy rate from 10.25 percent to 17 percent, financing was simplified, and markets were steered through the weekly buyback rate.
While consumer inflation with a policy rate of 17 percent began to attract a portfolio with real returns of more than 2 points, the president of the CBRT, Naci Ağbal, claimed that interest rates would not be reduced for a long time until that a permanent decrease in inflation be observed.
While the CBRT maintains its 9.4 percent inflation forecast for 2021, President Ağbal noted that the bullish risks in the forecasts are clearly significant, saying: “Therefore, the tight monetary policy stance should be maintained for a long time. weather. its impact on the inflation outlook. “He used the expressions.
Drawing attention to the inflation target of 5 percent for 2023 in the Medium Term Plan, Ağbal said: “The strict and prudent monetary policy stance must be resolutely maintained for a long time until 2023, when the target of the 5 percent. ” It showed the markets its commitment to a strong set of disinflationary policies.
Referring to CBRT reserves, Ağbal stated that currency purchase auctions can be carried out with transparent methods as long as they are in line with the floating exchange rate regime, noting the dissolution of residents’ currency deposit accounts national in terms of time. . Ağbal said that with the return of rediscount credits, they anticipate adding $ 21 billion to reserves this year.
