Şahap Kavcıoğlu, President of the Central Bank of the Republic of Turkey, announced the first inflation report of 2022. In the report, it was seen that the year-end inflation expectation was doubled.
Towards the end of last year, the Central Bank of the Republic of Turkey signed the decision to cut interest rates one after the other. The Turkish Lira, which lost value after the interest rate cut decisions, lost its value more than twice in the 3-month period with the increase in the demand for foreign currency. As a result, the prices of all products increased, Inflation also exceeded year-end expectations..
The Central Bank of the Republic of Turkey announced the first inflation report of 2022 with a press conference today. Central Bank Governor Şahap Kavcıoğlu stated that the inflation forecast for the end of 2022 increased from 11.8% to 23.2% announced. The headlines from Kavcıoğlu’s statement were as follows:
First inflation forecasts for 2022
Chairman Şahap Kavcıoğlu announced that they expect inflation to be 23.2% by the end of 2022. The previous forecast for the end of 2022 was 11.8%. But this estimate was also the midpoint of a range. Kavcıoğlu, in his statement, at the end of 2022 that inflation will occur with a probability of 70% in the range of 18.6% – 27.8% He shared his predictions. The previously shared range was 9.6% – 14.0%.
Kavcıoğlu stated that the ground of unhealthy price formations has been removed, They predict that the disinflation process will start in the coming months. explained.
No intervention was carried out on 20 December:
Central Bank Governor Kavcıoğlu also responded to the intervention discussions that started after the dollar was withdrawn from 18 to 12 on the day the Currency Protected TL Time Deposit was put into effect. Kavcıoğlu, to the question on the subject, “The Central Bank did not sell a single penny that day.” he replied.
The Central Bank publishes an Inflation Report at the beginning of each quarter, a total of 4 times a year. The final report was released on October 28, 2021, in the first month of the fourth quarter of 2021.