“We consider it important to raise awareness of the costs our economy and country incur due to inflation,” Naci Ağbal told economists and reporters at a videoconference on next year’s monetary and exchange rate policies.
An annual inflation target of 9.4% for end-2021 is the Central Bank’s intermediate target, noted the governor, adding that the bank is sticking to the government target of 5% in the medium term.
Ağbal said monetary policy will be adopted in a simple and understandable framework next year.
He also noted that the bank will not buy or sell foreign currency to determine the level or direction of exchange rates.
Turkey’s year-end inflation rate is expected to hit 12.1% for 2020, according to the bank, while under Turkey’s new economic program for 2021-2023, the country’s inflation rate target for this year is 10.5%.
The bank forecasts annual inflation for next year to hit 9.4% before stabilizing to around 5% in the medium term.
Turkey posted a 14.03% annual hike in consumer prices in November, according to TurkStat, the country’s statistical authority.
In a move hailed by markets, Turkey’s Central Bank last month raised its one-week repo rate – also known as its policy rate – from 10.25% to 15%, tightening its monetary policy to ensure price stability.
The move also came amid changes in Turkey’s economic administration and pledges of reform.
Hurriyet Daily news