President of the Turkish Central Bank: Monetary tightening will continue gradually

The new President of the Turkish Central Bank, Hafiza Ghaya Erkan, said on Thursday that the bank will tighten monetary policy gradually and will continue to implement selective tightening measures.

Speaking during a press conference in Ankara to announce the bank’s quarterly inflation report, Erkan stated that inflation will rise in the short term and the impact of the measures will be seen in the second quarter of 2024.

Arkan also said that the central bank raised its inflation forecast by the end of 2023 to 58 percent from 22.3 percent in its previous report, and raised its inflation forecast at the end of 2024 to 33 percent from 8.8 percent.

Arkan added in her first press conference that the bank’s inflation forecast for the end of 2025 is 15 percent.