[ad_1]
The president of the Central Bank of the Republic of Turkey (CBRT), Shihab Kavcioglu, specifying the basic purposes of all the means at their disposal that they would continue to use independently and effectively, “Inflation in permanent decline points to a strong indication that it will occur. until the policy rate, To maintain the strong disinflationary effect, one above inflation “We will continue to create levels,” he said.
In his speech at the opening of the 89th Meeting of the CBRT Ordinary General Assembly, Kavcıoğlu stated that they believe they will fulfill their responsibilities under the CBRT roof, together with all their colleagues, in the next term.
Hoping that the new period will be beneficial for the country, the nation and the bank, Kavcıoğlu said that the meeting was held in the framework of protection measures due to the new type of coronavirus epidemic (Kovid-19) that has been going on for the past year and has profoundly affected both daily life and world economies.
Kavcıoğlu pointed out that the epidemic created difficulties and uncertainties in the economic sense, as well as many things around the world: “As you know, the measures that started in the first quarter of 2020 and were implemented to prevent the spread of the disease in a negative way affected growth performance throughout the world. At this point, global growth prospects have improved and international commodity prices have risen with the effect of expansionary policies, as well as the positive evolution experienced in the vaccination process However, despite ongoing vaccination studies, the vaccination process and the disease epidemic. Continued uncertainties about its course keep the risks to the global economy alive. ” speak.
Kavcıoğlu, who also shared some important points regarding monetary policy at the first General Assembly, said:
“Within the framework of the duties and attributions of the Central Bank determined by the Law, we will continue to use the monetary policy tools effectively in line with the main objective of achieving a permanent decrease in inflation. We are strictly committed to the goal of reducing medium-term inflation at 5 percent, which is defined as price stability and is determined with our government. We will use the monetary policy tools appropriately to achieve the goal. I would like to underline that we are determined to reduce inflation to 5 percent. percent in 2023 and maintain this level in line with the medium-term framework established in the Inflation Report of January. I am aware that it is a prerequisite for job growth. With the awareness of our institutional framework, strong analytical capacity and responsibility, we will be in a determined and determined attitude to achieve this goal.
“We will ensure the strength and credibility of the TL with our determination to fight inflation.”
Şahap Kavcıoğlu emphasized that, as the Central Bank, they will continue to use all their tools independently and effectively in line with their main objectives.
Stating that in the next period, the one-week buyback auction rate will remain the main policy tool and will continue to implement monetary policy in a simple operating framework, Kavcıoğlu said: “Our inflation-focused monetary policy will be our most strong weapon that will serve as a shield against global fluctuations and financial market volatility “We will ensure the strength and credibility of the Turkish lira with our determination to fight inflation.”
Noting that the high levels of inflation and inflation expectations in the current period require a tight monetary policy stance, Kavcıoğlu continued as follows:
“The monetary stance will continue to be determined at a level of rigidity that will establish the disinflation process as soon as possible, taking into account the evolution of inflation and inflation expectations, and will ensure its continuity until we reach our medium-term goals. We will take our decisions with a data approach, taking into account the entire flow of data to the macroeconomy, especially inflation. In the new period, we will take advantage of our institutional capacity and ensure the persistence of the fall in inflation. It should not be forgotten that stability To reach the general price level will be achieved with the reduction of country risk premiums, the beginning of the inverse currency substitution, the increase in foreign exchange reserves and the permanent decrease in financing costs. It will positively affect stability. economic and financial. In this way, a conducive ground will be created for the continuation of the increase in investment. ion, production and employment in a healthy and sustainable way. “
Kavcıoğlu said that the realization of the benefits foreseen in the package of economic reforms announced by the government in the next period will be essential for the permanent decrease in inflation and sustainable growth by reinforcing confidence and stability.
Kavcıoğlu stated that they will continue to use communication channels effectively to increase the effectiveness of policies and obtain the opinions and suggestions of interested parties, and that they will share with the public the decisions they have made based on the principles of transparency. and predictability in its policies.
Following the speech of the president of the CBRT, Şahap Kavcıoğlu, the meeting of the General Assembly was held.
