Important interest statement from Central Bank Governor Ağbal
Central Bank Governor Naci Ağbal pointed out that it seems unlikely that they will take the rate cut on the agenda for a long time.
Central Bank (CBRT) Governor Naci Ağbal said that it does not seem possible to consider rate cuts for a long time this year. Ağbal stated that past cycles show that lowering the interest too early has economic costs.
EXCHANGE SWAP DEALS ARE NOT ON THE AGENDA
Speaking to Reuters, Central Bank Naci Ağbal stated that they have no plans to make currency swap agreements with foreign central banks. Ağbal emphasized that the Central Bank will increase its foreign exchange reserves patiently by using auctions.
THE CENTRAL BANK WILL AVOID THE MARKET
Noting that January inflation figures point to an upside risk for forecasts, Ağbal expressed that they are ready to tighten policy before any movement above the inflation forecast path. Ağbal explained that the aim of the Central Bank is to prevent the market with monetary policy decisions. CBRT Governor stated that they expect more capital inflows to the markets as they become aware of the CBRT's policy commitment.