Interest rate cut and inflation assessment from Prof. Dr. Erhan Aslanoğlu

EKONOMİ Newspaper Columnist Prof. Dr. Erhan Aslanoğlu evaluated the inflation outlook and monetary policy in the Turkish economy on Bloomberg HT, stating that interest rate cuts would create a limited impact and that the real need is for measures on a sectoral and firm basis.

Stating that developments in capital markets create pressure on domestic demand and economic growth, Erhan Aslanoğlu noted that the slowdown in demand supports the decline in inflation, but cost pressures stemming from energy prices persist. Expressing that under current conditions the contribution of interest rate cuts to the economy will remain limited, Aslanoğlu stated that the impact of 100, 150, and 200 basis point cuts would remain very limited and voiced the need for tailor-made sectoral and firm-based measures.

Drawing attention to the continuing pressure of oil and energy prices on inflation, Aslanoğlu shared an estimation range of 2.30-2.50 percent for October inflation and stated that the year could be closed with an inflation figure in the 30s.