Turkey's Central Bank to ‘adjust monetary stance’ at September meeting

Turkey's Central Bank to ‘adjust monetary stance’ at September meeting

ANKARA
Turkeys Central Bank to ‘adjust monetary stance’ at September meeting

The Turkish Central Bank has said it would take necessary actions to support price stability and monetary stance will be adjusted at a monetary policy committee meeting in September after official data showed the annual inflation rate exceeded forecasts. 

“Recent developments regarding the inflation outlook indicate significant risks to price stability. The Central Bank will take the necessary actions to support price stability,” the Bank said in a statement on Sept. 3.

“Accordingly, in line with the previous communication, monetary stance will be adjusted at the September Monetary Policy Committee Meeting in view of the latest developments,” it added.

“The Central Bank will continue to use all available instruments in pursuit of the price stability objective,” it noted.

The announcement came after official data showed Turkey’s consumer inflation accelerated more than expected last month as a sinking currency boosted prices.

The annual inflation rate rose to 17.9 percent in August from 15.9 percent the previous month, exceeding forecasts.

The highest annual increase was 27.13 percent in transportation, official data also showed.

The Turkish Statistical Institute (TÜİK) also said the monthly inflation was 2.3 percent.

The highest monthly increase was 5.85 percent in miscellaneous goods and services.

Central Bank, inflation rate, monetary policy