Şahap Kavcıoğlu, President of the Central Bank of the Republic of Turkey (TCMB), announced the second inflation report of the year.
Accordingly, the Central Bank's 2022 year-end inflation forecast rose from 23.2 percent to 42.8 percent, the crude oil forecast rose to $102, and the food inflation forecast rose to 49 percent.
"The strong rise in global commodity prices in the first quarter was the main determinant of the rise in inflation. Supply-side factors such as high transportation costs continue to adversely affect the inflation outlook. The midpoints of our inflation forecast range correspond to 42.8 percent at the end of 2022, 12.9 percent at the end of 2023 and 8.3 percent at the end of 2024," he said.
In the question and answer part of the meeting, "We will see that the inflation starts to go down after May in the path we have foreseen. It is seen that a productive period will be entered in agriculture, and this will have a very positive effect on inflation as of May. We do not see any problems in tourism, we even expect a good increase. We do not want the loans to go to foreign currency and different places. The rate is not at the point we want at the moment," Kavcıoğlu added.
THE CENTRAL BANK WAS AWARE THAT THE STRESS IS INFLATION!
"Our problem is inflation, we are aware of it. Our people can trust us. We will ensure permanent price stability in a short time. There is a misconception in Turkey. Monetary policy is considered implemented only when interest rates are raised. We lowered the interest. We implemented monetary policy. Currently, there is no country in the world that pays interest rates above inflation, except for a few countries, we know the problems and needs of our own country, we implement the monetary policy accordingly, I think we will get used to this, albeit with a delay," he added.