"Our main goal is price stability," Central Bank Governor says

"Our main goal is price stability," Central Bank Governor says
Date: 4.10.2023 11:00

Central Bank Governor Hafize Gaye Erkan made an economic presentation to the MPs at the Turkish Grand National Assembly Planning and Budget Commission.

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Hafize Gaye Erkan, President of the Central Bank of the Republic of Turkey (TCMB), made an economic presentation to the members of parliament at the Turkish Grand National Assembly (TBMM) Planning and Budget Commission.
Stating that price stability is their main goal in the presentation, Erkan said, "We use all our tools with determination and will continue to use them. We will patiently implement the monetary policy that will increase confidence."


Erkan stated that there was a temporary increase in inflation and said that economic stability will be achieved and reserves will increase when the disinflation process is entered.
"There is a temporary increase in inflation. In this process, we are carefully and meticulously creating the groundwork that will ensure sustainable disinflation in 2024. When we enter the disinflation period, temporary corrections in relative prices will be replaced by exchange rate stability, improved current account balance, financial discipline, permanent strengthening in capital flows and increasing reserves... The increase in oil prices and the ongoing deterioration in inflation expectations create additional upward pressure on inflation. These factors indicate that inflation will remain close to the upper limit of the forecast range in the inflation report at the end of the year. Wages, exchange rates and taxes had a significant impact on inflation. The main trend of monthly inflation started to slow down in September," Erkan said.


Erkan stated that the gap between consumer loans and cash loans has closed and the use of credit cards has decreased.
Speaking about exchange rate protected deposits, Erkan said, "The increase in reserves while the exchange rate protected deposit (KKM) balance is decreasing indicates that the strategy of transition from KKM and foreign currency deposits to TL is progressing successfully and the desired healthy transition to TL has begun."


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