İYİ Party's Yılmaz: We witnessed a rare event at the Central Bank governor's first inflation presentation

Akçay stated in his remarks after taking office that the disconnections experienced in previous processes had led to poor economic outcomes.

Following this confession-like statement, İYİ Party's Yılmaz said that the AKP government was responsible for the situation and made the following observations based on the statements made:

We witnessed a rare event at the new governor's first inflation report presentation.

CBRT Deputy Governor Cevdet Akçay clearly explained that they encountered massive damage when they took office and that the system was not functioning. I would like to recall a few questions here for which everyone knows the answer.

1. Who were the people who knowingly and willingly caused/ordered this damage? 

Answer: The AK Party government

2. What position does former Central Bank Governor Şahap Kavcıoğlu, one of the main figures responsible for the current picture, hold now? 

Answer: Chairman of the BRSA

3. Has there been a change in staff and methodology at TURKSTAT, where no one trusts the data announced, and has transparency been achieved? 

Answer: No

Unlike many others, I had said immediately after the appointments in June 2023 that the appointment made to the Central Bank Presidency was wrong and would lead to bad results.

Because the person appointed had neither training in monetary policy nor a single day of work experience in central banking. Worse, they were someone unsuitable for public office.

If those who made this appointment had done their duty and researched a little, they would have known that this person was not the right choice for this position. 

Now, with the same sense of responsibility and patriotism, I want to warn clearly: The end of this story is not good. Even TURKSTAT will not be able to meet, or even approach, the 36 percent inflation target for the end of the year. For an effective fight against inflation, it is essential to successfully guide expectations, but for that, people need to trust you and the data you use/announce.

STATEMENT FROM CENTRAL BANK DEPUTY GOVERNOR CEVDET AKÇAY

"In the system we are currently working in, the link between the weighted average funding cost and deposit interest rates has been broken, the link between the policy rate and inflation has been broken, and the link between interest rates and exchange rates has been broken"

Akçay continued: "We have been re-establishing the broken links for seven months. These ties will be re-established. Data will accumulate. You will use the field data, you will do modeling. It is very difficult to feel the need to go from 36 to 38 from there. Friends who know modeling will understand me very well that this is very difficult and even close to impossible."

Stating that the 36 percent target is "an ambitious but accessible target," Akçay said, "It is much better than an unambitious and easily reachable target in terms of bringing inflation down and correcting inflation expectations. We strongly believe in the correctness of what we are doing."

News Source: 12punto