Turkish Central Bank to pursue tight monetary policy against inflation
Turkey’s Central Bank Governor Naci Agbal said Wednesday he would seek to stem inflation, possibly through further rate hikes, pledging to continue tight monetary policies and stabilize the nation’s currency.
ISTANBUL — Turkey’s new Central Bank Governor Naci Agbal pledged to maintain a tight monetary policy to stem the nation’s double-digit inflation during a videoconference Wednesday in which he outlined plans for 2021.
Appointed in early November, Agbal oversaw Turkey’s largest interest rate hike in two years during his first policy rate meeting last month. He said Wednesday he was prepared to raise rates further if necessary to curb inflationary pressures. The Central Bank’s next rate meeting is scheduled for Dec. 24.
“We are determined to achieve disinflation,” Agbal said, adding, “In order to achieve this objective we will tighten monetary policy, if necessary. … In 2021, we will maintain a tight stance in monetary policy until there is a lasting fall in inflation.”
Agbal also pledged to rebuild the nation’s depleted foreign exchange reserves next year, reversing his predecessors’ policies that saw about $150 billion in reserves spent over the two years, according to Goldman Sachs estimates, to support the Turkish lira against devaluation.
