'Turkey to see effects of current monetary policy stance in 1st half of 2022'

By Aysu Bicer

ANKARA (AA) – Turkey will observe the cumulative effects of its current monetary policy stance in the first half of 2022, the Central Bank governor said on Thursday.

Turkish Central Bank officials met with local investors at a virtual meeting after the bank's recent foreign exchange intervention which was carried out for the first time since 2014.

"Turkish companies' investment appetite and employment expectations have reached high levels compared to previous years," Sahap Kavcioglu said during his presentation for local investors.

The current account balance gave a surplus in August and September, and the improvement in the annual current account balance continued, he said.

The bank will hold an online meeting with foreign investors late on Thursday.

- FX intervention

"When the rising commodity prices and the factors originating from the supply chain disappear, inflation will decrease," he said, adding the growth rate of commercial loans is 8% annually, well below the averages of the previous years.

After seeing "unhealthy" price formations in fluctuating foreign exchange rates, the bank on Wednesday said it had intervened in the market through selling transactions.

The bank also said it had started to conduct transactions at the Borsa Istanbul Derivatives Market (VIOP).

The Turkish Central Bank’s previous direct foreign exchange intervention came in January 2014, with a sale of $3.15 billion.