The statement made by the Republic of Turkey Central Bank following the August inflation figures included the following, “Recent developments relating to the inflationary outlook point to significant risk as far as price stability is concerned. The Central Bank will react as required for the purpose of supporting price stability. Taking stock of recent developments, the monetary stance will be reshaped at the September Monetary Policy Board meeting. The Central Bank will continue to use all the tools at its disposal in pursuit of its basic aim of price stability.”
Economist Ümit Akçay, summarizing the Republic of Turkey Central Bank’s statement on the inflation data on his personal Twitter account, noted that the statement may harbinger a “shock interest rate hike.”
Akçay tweeted as follows:
“The Republic of Turkey Central Bank has issued a new statement. Is “reshaping the monetary stance” increasing the inflation target or a “shock” interest rate hike?