ISTANBUL, April 29 (Reuters) – In his statements at the second inflation report meeting of the year, Central Bank Governor Şahap Kavcıoğlu said:
* In the last MPC decision, we gave a clear guidance by stating that the policy rate will be formed on inflation until strong indicators that point to a decline in inflation are formed; we will continue this as well.
* Our analysis indicates that the effect of price pass-through in the exchange rate may be slightly above 20%.
* Studies indicate that the pass-through coefficient is limited.
* In the baseline scenario, we think April inflation data will peak, then inflation will come down.
* We will maintain our tight stance.
* Kavcıoğlu to the question of removing the statement that additional tightening will be applied if necessary from the PPK text: “I believe when we take a clearer stance with the April PPK decision text.”
* Inflation targeting is done as necessary, I am surprised that such importance is attached to this statement.
* In our inflation baseline scenario, we anticipated April as a peak.
* After April and all our studies in H2, it seems that inflation will go down.
* We weave all our work and policies around this prediction.
Reported by: Nevzat Devranoğlu, Can Sezer
By: Canan Sevgili
Editorial: Ebru Tuncay
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