The Central Bank of Turkey maintains a tough stance on inflation and interest rates.

The Central Bank of Turkey prepares to maintain high interest rates

The Central Bank of Turkey plans to keep its inflation forecast for the end of the year unchanged and to maintain high interest rates to achieve its goals, said bank chairman Fatih Karagu. He emphasized the bank's readiness to do 'everything necessary' to curb price pressure, given the temporary influence of currency volatility in March.

A benchmark for future decisions

Maintaining such rhetoric increases the likelihood that interest rates will not be lowered at the next meeting of the Monetary Policy Committee, which will take place on June 19, noted QNB Bank chief economist Erkin Isik. The bank has already raised the base interest rate and overnight lending rates to levels that were in place before the arrest of presidential political rival Recep Tayyip Erdogan in March.

The central bank's policy on managing inflation is once again confirmed, but the results of the cessation of the inflation decline in April confirm that the problem is still far from being resolved.