Deputy Governor of the Central Bank Akçay: Interest rate cut is not on the agenda.

The Central Bank, which has kept interest rates stable for the past 4 months, will make a decision to reduce them in the next period, or is it too early for that? Turkey Republic Central Bank Deputy Governor Cevdet Akçay answered the question of curiosity.

Cevdet Akçay made statements to Reuters about Turkey's economic agenda. Here are the highlights from Akçay's statements:

"TIGHT MONETARY POLICY STANCE WILL BE MAINTAINED"

"An early interest rate cut could create a renewed inflation risk. The easing in monetary policy will only begin after a permanent decrease in monthly inflation and when many factors become appropriate. The tight monetary policy stance will be maintained until there is a permanent improvement in inflation, expectations, and domestic demand.

"WE ARE CLOSELY MONITORING EXPECTATIONS"

We closely monitor market, business, and household inflation expectations; only market expectations have started to converge with our year-end forecast. We estimate that tax and administered price adjustments will contribute an additional 1.5 percentage points to monthly inflation in July."

On the other hand, the Central Bank announced its July interest rate decision a few days ago and kept the policy rate stable at 50 percent, in line with expectations. With this decision, the Central Bank has kept interest rates stable for the fourth consecutive month.