In the announcement made by the Central Bank of the Republic of Turkey (TCMB) on interest rates, it was reported that the Monetary Policy Committee (PPK), chaired by TCMB Chairman Şahap Kavcıoğlu, decided to reduce the policy rate from 13 percent to 12 percent. In the announcement, it was stated that the weakening effect of geopolitical risks on economic activity around the world continues to increase and said, “Global growth forecasts for the coming period continue to be updated downwards and the evaluations that recession is an inevitable risk factor are becoming widespread. Although the negative effects of supply constraints in some sectors, especially in basic food, have been reduced thanks to the strategic solution tools developed by Turkey, the upward trend in producer and consumer prices continues on an international scale.”
THE DISINFLATIONIST PROCESS IS DEPENDENT ON THE FACILITY OF GLOBAL PEACE!
In the PPK announcement, the rise observed in inflation; It was reported that energy cost caused by geopolitical developments, the strong negative supply shocks caused by the lagged and indirect reflections of the price increases, pricing formations far from economic fundamentals and the increases in global energy, food and agricultural commodity prices continued to be effective. In the announcement, it was stated that the Monetary Policy Committee predicts that the disinflationary process will begin with the re-establishment of the global peace environment, together with the steps taken to strengthen sustainable price stability and financial stability. (Anadolu Agency)
MONETARY POLICY MAKES THE MONEYLENDER RICH!
The Central Bank, which is supposedly autonomous and in reality acting on the orders of the government, first reduced the policy interest rate from 19 percent to 18 percent last September, and to 14 percent by December. The interest rate, which decreased to 13 percent in August 2022, was reduced to 12 percent at the meeting yesterday.