Turkish central bank Governor Cetinkaya: New tightening cycle is possible

The Central Bank of the Republic of Turkey (CBRT) Governor Murat Cetinkaya was on the wires last hour, via Rueters, presenting the bank’s quarterly inflation report.

Key Headlines:

Fluctuations in reserves were not abnormal.

It is important to look at medium term trends when looking at reserve levels.

There was no deterioration in any parameter of reserve effectiveness.

 The bank’s decision to remove a reference to further tightening in last week’s rates-setting announcement reflected a structural approach.

Would decisively use all tools available to bring down inflation in line with targets.

Forecasts inflation would fall to single digits in Q2 2020.