Turkey's central bank has doubled its inflation forecast

 

Turkey's central bank more than doubled its year-end inflation forecast to 58 percent on Thursday as its new Wall Street-trained governor vowed to keep raising interest rates after years of controversial policies.

Former Goldman Sachs and First Republic Bank chief executive Hafize Gaye Erkan announced the revised projections at his first press conference since his appointment last month.

The forecast, which rose from 22.3 percent before Erkan took office, follows years of doubt by independent economists about the official rate.

Since Erkan took office, the central bank has raised interest rates twice as it deviated from President Recep Tayyip Erdogan's unorthodox policy of cutting borrowing costs to fight inflation.

On Thursday, she hinted that more hikes are on the way.

"We will gradually strengthen monetary tightening as needed until a significant improvement in inflation is achieved," Erkan told reporters.

She said inflation would be on a "temporary" upward trend due to the exchange rate and fiscal measures.

Erkan added that the bank's main objective was price stability and hoped that inflation would have a downward trend as the currency tightening began.

The bank nearly doubled its rate from 8.5 percent to 15 percent last month, but its next hike was smaller, raising it by 17.5 percent.

While markets clamored for a rate hike, the moves disappointed as analysts said they were not ambitious enough.

The Turkish currency has lost a quarter of its value against the dollar since the end of May. On Thursday morning, the lira was 26.7 against the dollar.

Erkan is the first woman to hold this job.

Her resume includes degrees from Princeton and Harvard, a top job at Wall Street titan Goldman Sachs and a role as co-CEO of California's First Republic Bank.

Erdogan also named former Merrill Lynch economist Mehmet Simsek as finance minister.

Both have pushed for a conventional policy that involves raising interest rates to fight inflation — the opposite of an approach long supported by Erdogan, who has a history of dismissing bank governors.

Erkan assured that a period of stability will begin after 2025.

"We will continue to use all our tools with determination until inflation comes down to single digits," she said.

BlueBay Asset Management economist Timothy Ash (who goes by X) said on Twitter that Erkan sounded good in her press conference because she "didn't gloss over the inflation issues."

Even as inflation soared to 85.5 percent in October, Erdogan continued to declare rate hikes the enemy.

But after winning a hard-fought election in May, he said he would approve his new economic team's recipe for getting Turkey out of its current problems, although he still did not support higher rates.

Türkiye Merkez Bankası, Ekonomik Zorluklar Nedeniyle Inflasyon Tahminini İkiye Katladı

[Tarih, Ay, Gün] – İstanbul, Türkiye: Türkiye Merkez Bankası has updated its inflation forecast due to the country's economic difficulties. According to the statement made, the bank, doubling its previous forecast for 2023, announced that it expected another difficult year for the economy.

Enflasyon Tahmini Yüzde [XX] Artırılarak Revision Edildi

The loss of value in the Türk lira, the increase in energy in food prices, gibi bir dizi faktor, Türkiye ekonomisini özöttättättätä gebähmeye devam edior. Therefore, Türkiye Merkez Bankası increased the inflation estimate by [XX] percent, compared to the previous estimate. The new forecast shows that the inflation rate for 2023 will be higher than previously thought.

The President of the Merkez Bankası [Ad ve Soyad], in his statement, emphasized that the country's economy is facing difficulties and that it is important to take control of the inflation.

Different Opinions from Ekonomi Uzmanlardin

Bu güncelenen inflation ıtızım, ekonomi uzmanları arındın dırçeği hazındleri berberinde bringerında. Bazi uzmanlar, ekonomika dengesizliklerin ve global piyazlardaki nektiliğin eksiyyle inflanun daha da yüskelmesini beklediklerini dile bişlerken, others, alynacak kır kırındarle inflasynaııornay kontrol alt

Türkiye ekonomisi, bu yeni inflation ıtızamine göre, is preparing to fight in the future. Hükümet ve adas ekonomi paydaşları, inflanun kontrol alımmenı ve ekonomi stabilizın ın ınsın bir sılın sürdüyor alınızın.

Sonuç Olarak

Türkiye Merkez Bankası'nın inflantın ıtımini kiye katlaması, the country's economic situation is göz yınde bulundışındın kızın bir ışmüşmedir. Güncellen ıtımlar, hükütü ve adas ekonomiya paydaşları için kımın bir rehber üçükındedir ve alynacak ekonomı kızılımındınde yol taşıci ıyalıda. In these difficult times, it is important for all parties to work together in order to ensure economic stability.

Meta Description: Türkiye Merkez Bankası, the negative changes in the economy of the economy, due to the inflation estimation, have been reduced by two. Haberin Details...

Anahtar Kelimeler: Türkiye Merkez Bankası, inflan ıtımani, ekonomiya, kiye katlama, ekonomika opşın, güncel haber

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