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The central bank sent an "open letter" to the government

The Central Bank sent an “Open Letter” to the Minister of Finance and Finance Berat Albayrak on behalf of the government. As mentioned in the main policy text, entitled “In Monetary and Monetary Policy for 2018”, published on December 5, 2017, the inflation target for 2018 was withdrawn by the government at a rate of 5 percent.

The same text indicates that if inflation falls outside the 2-percentage point uncertainty range defined around the end-year target, the letter will be written in an open letter to the government.

The reasons for the deviation of inflation from the target indicator and the measures taken to reach the target, and the measures to be taken were included in the letter, the factors determining inflation in 2018, and the measures taken to reach the target.

As a result of changes in the exchange rate in 2018,
the growth of its transmission.

In addition to monetary policy steps, a letter to a balanced economic program that controls inflation expectations and worsening price behavior says that inflation levels and global uncertainty retain risks to price stability and require a cautious political approach.

In the letter we wrote down:

“In the coming period, the CBR will continue to use all its instruments in accordance with the main goal of price stability. It is expected that when forming a monetary policy position, inflation will continue to decline by a single figure, and then come close to the inflation target of 5 percent. The CBR will closely monitor the development of other factors affecting the CBT, and if necessary, an additional tightening of monetary policy can be achieved.
Inflation was again effective in a downtrend. A tough monetary policy position and continued close policy coordination are crucial for reducing inflation stiffness, limiting risks with regard to pricing behavior and achieving inflation targets. According to this view, it is expected that the perception of risk will continue to improve, and the channel of trust and credit channel will gradually support economic recovery.

The CBR will continue to support structural studies to ensure price stability. Continuing to reduce volatility and the volatility of inflation will greatly contribute to price stability and social welfare. In this context, the CBRT will continue its efforts to facilitate the analysis of structural elements and the creation of macroprudential policies.

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