Turkey’s Central Bank President: S & P did Not Participate in Our Assessments

Turkey’s  Central Bank President, Murat Çetinkaya said that while evaluating the reports given by credit rating agencies, S & P did not participate in the Central Bank’s assessments in its report. Çetinkaya, who advocates a hasty decision, said, “When we examine these reports, we see various references to structural elements, including growth scenarios for the Turkish economy. All of this, we believe that our country will perform a positive performance for the coming period “.


Turkey Central Bank President Murat Çetinkaya said that in the first annual inflation report meeting, inflation would continue until march, and double-digit inflation rate was an important risk. Çetinkaya stated that inflation will stabilize at 5 percent in 2019.

Central Bank raised the 2017 and 2018 inflation forecasts. Central Bank President Murat Çetinkaya explained that inflation forecasts for the year 2017 will increase from 6.5 percent to 8 percent and 2018 inflation expectation will increase from 5 percent to 6 percent. When Çetinkaya gave the answer that the simplification did not change his theoretical approaches to the question of whether or not he was blessed, he conveyed the message to the markets that “additional tightening can be done if necessary”. Cetinkaya stated that inflation in double digits in the first half of this year is an important risk, of course, “We will use all the tools in our hands. It will be the wave of inflation until the end of March. We will follow a fluctuating course over the course of the year, “he said.

Explaining the Inflation Report, Çetinkaya said that in 2019, inflation will stabilize at 5 percent. Çetinkaya explained the reasons for the upward update in inflation as follows:

Upward revision of the import price was made depending on the depreciation of the Turkish Lira and oil prices. This inflation picked up the forecast 1.3 points.

The recovery in domestic demand in 2017 will be slower than anticipated. This will affect the 2017 inflation forecast by 0.4 percentage points.

The effect of increasing food inflation from 7 percent to 9 percent is 0.4 points.


Finally, they considered that the upward trend in core inflation indicators would raise the 2017 inflation by 0.2 percentage points.

Çetinkaya, answer to this question”Why did you prefer the liquidity measures instead of the policy interest rate increase in the Monetary Policy Board in January?” “The first question here is the stance of the monetary policy. Our monetary policy stance is tight. Additional tightening, if necessary, was also on the table. “We will also take the necessary measures with liquidity instruments if unhealthy price developments are observed in the foreign exchange market,” he said, adding that they will use all the instruments in the framework of price stability.

Çetinkaya, said: “We faced a different look in January. Even if the macro framework and economic bases remain unchanged, there is a hyperactivity observed in the currencies, historically excessive volatility and healthy price formation. Therefore, we faced a risk not only price stability but also financial stability. ”


Cetinkaya, who stated that MONITORING tightening and liquidity instruments were put into effect, stated that in the next period simplification will be on their agenda as a preference for themselves when the risk premiums decrease and volatility decreases. Çetinkaya, who gave the message that the current frame will continue for a certain period of time, said that they think that the measures they take are sufficient. Çetinkaya, “All vehicles will continue to use in a dynamic and efficient way,” gave the message.