Turkey’s Central Bank to maintain current tight stance to balance risks on inflation: Governor

ANKARA

The Turkish Central Bank will maintain its current tight stance in monetary policy in order to balance risks on inflation, Central Bank Gov. Murat Çetinkaya said on April 24, after consumer price growth soared to an 8.5-year high in March.

“We will maintain our tight stance in monetary policy until a visible improvement is seen in the inflation outlook,” he said in a speech at the bank’s annual meeting in Ankara, as quoted by Reuters.

He noted that some further measures would be taken in the near future in a cooperative move together with the Food Committee. 

“We believe that the structural steps will make a contribution to maintaining price stability,” added Çetinkaya. 

He also said the current high inflation signaled risks to pricing behavior, but that structural reforms would help achieve price stability.

Çentikaya said the bank expected the current account deficit to be under 4 percent in 2017 and that a gradual recovery in economic activity should be expected as of the second quarter of the year.

“The recent data have signaled a moderate outlook in economic activity in the first quarter. By the second quarter of the year, we estimate a gradual recovery in the economy,” said Çetinkaya, adding that the growth in net exports would be a key driver here. 

According to the bank’s balance sheet, which was released on April 24, the bank made an 11.18 billion-Turkish Lira profit before taxes in 2016 and 9.55 lira net profit. A key part of the profit is slated to be transferred to the Treasury. 

Meanwhile, Ömer Duran, Vehbi Çıtak and Fatih Güldamlasıoğlu were elected as new members to the Central Bank General Assembly.