Turkish Central bank keeps inflation target at 5 percent
The Turk sh Central Bank (CBRT) w ll set monetary pol cy to br ng down nflat on gradually, accord ng to a report ssued December 5. The bank kept the m d-term nflat on target at f ve percent, as per the agreement reached w th the government. “The f rst object ve s to br ng down nflat on to s ngle d g ts, and then gradually reduce nflat on further to stab l ze t,” sa d the Bank’s Monetary and Exchange Rate Pol cy for 2019. Stat ng that the pr mary object ve s to ach eve pr ce stab l ty, the Bank sa d t would cont nue to safeguard f nanc al stab l ty as a support ng element. The report sa d that the Bank w ll cont nue to mplement a float ng exchange rate reg me n 2019. “If the exchange rate movements permanently affect pr ce stab l ty, the CBRT w ll change ts monetary pol cy stance and g ve the necessary react on,” t sa d. H ghl ght ng the mportance of f scal d sc pl ne to f ght nflat on, the Bank sa d coord nat on between monetary pol cy and the f scal pol cy s cruc al w th respect to d s nflat on and macroeconom c rebalanc ng.