"The smaller-than-expected decline in Turkey's headline rate to 49.4 percent y/y in September will be a disappointment to policymakers at the central bank," remarked Nicholas Farr, emphasizing the unexpected inflation dynamics and their implications for monetary policy.
"Farr noted that inflation would fall over the coming months but expressed skepticism about the central bank's end-year forecast of 38 percent, stating it 'looks way out of reach' due to persistent core inflation pressures."
"Erdogan asserted that 'our people will feel the slowdown more in the bazaars, and in their shopping baskets,' pointing to an anticipated tangible impact of inflation trends on everyday consumer experiences in Turkey."
"The central bank's approach has been to maintain a stable interest rate at 50 percent for six months while remaining sensitive to inflation risks, reflecting their cautious stance amidst uncertain economic conditions."
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