Update: April 30, 2022 11:02 p.m. STI
Ankara [Turkey]April 30 (ANI/Sputnik): The inflation situation in Turkey will start to “regress” after May and the first positive developments in the country’s economy will be observed at the end of 2022, given the measures and precautions taken by the government Turkish. President Tayyip Erdogan said on Saturday.
On Thursday, the Turkish Central Bank raised its inflation forecast for the end of 2022 from 23.2 pc to 42.8%.
“We have closely followed all the developments and taken the necessary precautions. Let our people not worry, we will solve this problem. Our objective is to reduce inflation. Considering the measures we have taken and that we let’s hope the situation starts to regress after May. I can say that by the end of the year it will lead to a more positive outlook,” Erdogan told reporters upon his return from Saudi Arabia.
At the same time, the Turkish leader pointed out that high inflation is observed not only in Turkey but elsewhere in the world, especially in developed countries, due to the deterioration of the global economy.
In 2021, after a series of key rate cuts, the Turkish lira suffered a sharp decline, losing more than 50% of its value to the benefit of the US dollar. On 16 December, the Turkish Central Bank reduced the key rate by 100 basis points from 15 pc to 14 pc and has continued to keep it unchanged since.
At the same time, the Turkish lira continues to lose its value. At the end of January, the exchange rate was 13.5 lira per dollar, and in April it was 14.82 lira per dollar. On 4th April the Turkish Statistical Institute indicated that the country’s annual inflation rate had accelerated to 61.14% in March from 54.44 pc in February. (ANI/Sputnik)