In a briefing on its latest quarterly inflation report, Agbal said the bank forecast that inflation will fall to 7% at the end of 2022. The official target is between 3% and 7% on an annual basis.
The lira has hit a series of record lows beyond 8 to the U.S. dollar this year, but has recovered some ground since Agbal was named governor and delivered the rate hike.
The central bank had previously linked reserve requirement ratios and remuneration rates to loan growth, which had spurred lending and economic growth.
In a written statement after the former finance minister was appointed Saturday to replace ousted governor Murat Uysal, Agbal said policy communication will be strengthened in the framework of transparency, accountability and predictability principles.
In a surprise move that might help the Turkish Lira to stabilize, Central Bank of the Republic of Turkey (CBRT) raised its benchmark interest rate by 2 percentage points on Thursday, its first hike in two years to fight inflation and support its falling currency.
The cost of funding will likely increase to 9.75pc as a result of Tuesday's step, compared to an expected level of 9-9.5pc before the move, the trader told Reuters.
