Central Bank: Inflation to Decrease to 24 Percent

The Central Bank made a post titled “Data-driven Monetary Tightening” on its social media account. The post stated that a tight monetary policy stance is being firmly maintained, with inflation expected to decrease to 24 percent. The Central Bank informed through a post on its social media account titled “Data-driven Monetary Tightening” that the firm stance on tight monetary policy is being upheld. A video titled “Data-driven Monetary Tightening” was shared by the Central Bank on its social media account. Some of the highlighted points in the video shared by the Central Bank include: “The Central Bank of the Republic of Turkey initiated a monetary tightening cycle in June 2023. Preventing inflation from rising to higher levels was achieved with the initial measures taken. Steps taken in fiscal policy contributed to disinflation. As a result, annual inflation remained at the same level as in 2022. By June 2024, disinflation was established. By the end of 2024, inflation decreased to 44.4 percent. Improvement in inflation expectations of consumers and firms continues. Decrease in inflation expectations of the real sector and households is becoming more pronounced. The share of Turkish Lira deposits increased from 31.6 percent to 59.4 percent. Decrease in the current account deficit reduces the need for external financing. Reserves reached their highest levels in history. Gross international reserves exceeded 166 billion dollars, increasing by 68 billion dollars. The increase in net reserves excluding swaps was 126 billion dollars. The tight monetary policy stance is being firmly maintained. The disinflation process continues in 2025 with noticeable achievements. Inflation is expected to decrease to 24 percent by the end of the year. The Central Bank will contribute most to social welfare by ensuring price stability.”