“Central Bank Maintains Tight Stance In Liquidity Policy”

– Governor of the Central Bank of Turkey (CBRT) Erdem Başçı emphasized they maintained tight stance in liquidity policy in order to reduce the risks stemming from the rise in inflation expectations and the influence of the exchange rate.

Having delivered a presentation to the Banks Association of Turkey, Başcı told that the improvement in the current account balance would become more pronounced with the August figure and was expected to continue throughout the year.

“The contribution of net exports to growth is expected to pick up in the second half with support from the rising demand of the European Union economies” told Başçı in his presentation, having added:

"The CBRT maintains a tight policy stance to address inflationary risks from the exchange rate pass-through and higher inflation expectations. Recently, the CBRT has taken a broad set of measures in the context of the ‘road map during the normalization of global monetary policies’. Overall, CBRT policies are tight for the inflation outlook, stabilizing for FX liquidity, and supportive for financial stability.”