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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.
People walk past a screen showing rates at a currency exchange agency near Grand bazaar, in Istanbul, on September 24, 2020. - Turkey's central bank on September 24, 2020 raised its main interest for the first time since September 2018, boosting the rate by two percentage points to help the lira recover from historic lows. (Photo by Ozan KOSE / AFP) (Photo by OZAN KOSE/AFP via Getty Images)

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.

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