“In the base scenario, we think inflation will peak in April and then come down, we will maintain our tight stance” Author Reuters

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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