Turkey’s monetary policy will remain tight for a while to ensure that inflation falls and remains anchored at lower levels, Reuters reported, quoting Finance Minister Mehmet Şimşek on Thursday.
“Since inflation is high in our country, monetary policy will remain tight for a while. It will go up to a level that will anchor inflation and will stay there for a while,” Şimşek told a conference in Ankara.
After years of easy policy, the central bank pivoted in June and has since raised its key interest rate by 3,400 basis points to 42.5 percent to rein in inflation that neared 65 percent last month.
The bank said it will complete its tightening cycle as soon as possible.
Şimşek, who was appointed in June to help lead the policy U-turn, said he expects lower inflation and economic growth this year, and a global transition to looser monetary policy.
Inflation is high but in line with Turkey’s medium-term program, and it will fall, he added.
The ministry clarified that Şimşek was referring to the global situation when discussing monetary policy.