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The Central Bank sent the "Open Letters"



The Central Bank sent the Finance Ministry and Finance Minister Berat Albayrak "on behalf of the Government" an "open letter". As mentioned in the main political text entitled Currency and Exchange Policy in 2018 Belir, published on December 5, 2017, the inflation target for 2018 was referred to the government as 5 percent.

The same text states that if inflation does not fall into the uncertainty band of 2 percentage points, determined around the target at the end of the year, the letter will be written in an open letter to the government.

The reasons for the deviation of inflation from the objective and the measures taken to achieve the objective and the measures to be taken were included in the letter, including the factors determining inflation in 2018 and the measures taken to reach the target.

As a result of exchange rate movements in 2018,
increase.

In addition to monetary policy measures, he listed a balanced economic program that put inflation expectations and worsening price behavior under control that inflation and global uncertainty led to increased price stability and required a cautious policy approach.

We wrote in the letter:

"In the coming period, CBRT will continue to use all of its instruments in line with the main objective of price stability." In the formulation of monetary policy stances, inflation is expected to continue to decline in a single digit and then move closer to the 5% inflation target. to monitor the development of other factors that affect CBT and, if necessary, to further tighten monetary policy.
inflation has again been on the downward trend. A strong monetary policy stance and continued strong policy co-ordination are key to reducing inflation rigidity, reducing risks to price behavior and achieving the inflation target. From this point of view, it is assumed that risk perceptions will continue to improve and the confidence channel and credit channel will gradually promote economic recovery.

CBRT will continue to support studies of structural areas for sustained price stability. Continued reduction of volatility and volatility of inflation will significantly contribute to price stability and social well-being. In this context, CBRT will continue its efforts to contribute to the analysis of structural elements and macro-prudential policies.


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