Erdal Sağlam said on Mesele Ekonomi that Iran-Israel tensions are pushing up global oil prices and deepening inflation pressures in Turkey.
February inflation data exceeded expectations, and annual inflation is expected to move higher again. Seasonal food price increases and fuel price hikes are adding to that pressure.
Rate-cut debate and sector FX exposure
Sağlam noted that a possible March interest rate cut by Turkey's central bank is being discussed amid political demands, with bank general managers also reportedly signaling that direction. The real sector's FX open position has climbed to 188.5 billion dollars, creating risk, while the central bank's reserves have shown a mild recovery in recent days.
