In a written statement, the bank emphasized that while there has been a gradual decline in inflation, the underlying trend of monthly inflation remained higher than anticipated. Factors contributing to this trend include robust domestic demand, persistently high services inflation, inflation expectations, geopolitical risks, and food prices.

The bank highlighted that the monetary policy measures implemented in March had resulted in a significant tightening of financial conditions. It reiterated its commitment to closely monitoring the effects of these measures on credit conditions and domestic demand.

The statement emphasized that the central bank will maintain its tight monetary stance until a substantial and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations align with the projected forecast range. Additionally, it stated that monetary policy will be tightened further if a significant and persistent deterioration in inflation is anticipated.

The bank outlined its strategy to achieve disinflation in the second half of 2024 through moderation in domestic demand, real appreciation in the Turkish lira, and improvement in inflation expectations.

Furthermore, the central bank affirmed its commitment to implementing macroprudential policies to preserve market functionality and macro financial stability. It stated that monetary transmission mechanisms will be supported, and market liquidity will be closely monitored and managed effectively.

The statement concluded by stating that the central bank will continue to closely monitor indicators of inflation and the underlying trend of inflation. It emphasized the use of all available tools to achieve the main objective of price stability in a predictable, data-driven, and transparent manner.

The summary of the Monetary Policy Committee Meeting will be released within five working days, according to the statement. (ILKHA)