'Inflation to start declining in 2024'

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Hafize Gaye Erkan, the Governor of the Central Bank of the Republic of Turkey (CBRT), along with Deputy Minister of Treasury and Finance Osman Çelik, met with representatives of the jewelry sector in Ankara.

During the meeting, the duo listened to the issues raised by the sector representatives and made statements.

According to a statement from the Association of Jewelry Exporters (MİB), Deputy Minister Osman Çelik stated that as the government, they have started to establish macro balances and are meticulously monitoring the side effects of measures on the real sector. He also mentioned that their aim is to take the necessary measure so as to enhance the competitive strengths of relevant sectors in exports.

CBRT Governor Hafize Gaye Erkan also stated, "In order to establish a sustainable foundation for inflation to start declining in 2024, we continue to implement the roadmap that we shared with the public during our Inflation Report meeting through gradual and decisive steps."

"Gradual and determined monetary tightening"

Following Hafize Gaye Erkan's appointment as the CBRT Governor, the Monetary Policy Committee increased the policy rate from 8.5% to 25% over three meetings. The last increase by 750 basis points raising the policy rate from 17,5% to 25% was made last week on Thursday (August 24).

The MPC decision texts emphasized gradual and determined monetary tightening messages, and Governor Erkan, during the Inflation Report Briefing Meeting on July 27, stated, "We initiated a strong monetary tightening process in June. We highlighted that this process would be gradual, balanced, and stable."

In the MPC decisions dated July 20, 2023, and August 24, 2023, it was indicated that the gradual simplification process, which aims to strengthen macrofinancial stability and enhance the functionality of market mechanisms, will continue. The decisions also noted that selective credit and quantitative tightening measures supporting the monetary tightening process will be taken. (HA/PE)