Turkey Central Bank Chief Expects Single Digit Inflation by 2026

Turkey’s central bank governor Hafize Gaye Erkan said its monetary tightening cycle has approached an end and called on foreigners to invest in lira-denominated government bonds at current favorable returns.

Tight monetary policy has started to have an effect on consumer prices but single digit inflation won’t be achieved before 2026, Erkan said in an interview with Hurriyet daily on Saturday. The central bank has increased the policy rate by more than 30 percentage points to 40% since Erkan’s appointment in June.