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Turkish cenbank chief says inflation to cool in Q4

Turkish cenbank chief says inflation to cool in Q4

FILE PHOTO: People shop at a food market in Istanbul, Turkey, February 11, 2019. REUTERS/Murad Sezer

ISTANBUL : Turkish Central Bank Governor Sahap Kavcioglu said on Wednesday that food inflation jumped above historic trends in the summer but repeated that overall inflation should enter a falling trend in the fourth quarter.

Speaking at a German-Turkish Chamber of Trade and Industry meeting, he also said that high interest rates on loans limit Turks' access to credit. The bank's key policy rate has been set at 19per cent since March.

Kavcioglu said that while there was room to improve on inflation - which was above 19per cent in August - and foreign currency reserves, data shows that exports and services are boosting economic growth.

The bank, under pressure from President Tayyip Erdogan for stimulus despite the high inflation, has a monetary policy meeting on Sept. 23. The lira slipped as Kavcioglu gave the rare public speech.

(Reporting by Can Sezer, Ebru Tuncay and Ezgi Erkoyun; Writing by Jonathan Spicer; Editing by Daren Butler)

Source: Reuters

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