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"While the inflation's decelerating trend is something we have anticipated, we remain driven to be bolder and more focused on our overall anti-inflationary measures," the joint statement read.
Such decision is explained with the need to maintain anti-inflationary monetary policy, positive real interest rates and to reduce inflation expectations.
While a central authority unilaterally can inflate a traditional currency by printing more money, a legitimate cryptocurrency has an anti-inflationary process built into its code.
'It was part of our anti-inflationary measures and we are restarting our negotiations with Indonesia,' Agriculture Secretary Emmanuel F.
The economic team welcomed the 'marked slowdown' in headline inflation, which it attributed to 'the efficacy of anti-inflationary measures taken by the government.'
Furthermore, the cryptocurrency has a mining cap at 500,000,000 coins, which is a natural anti-inflationary tool to keep valuation and exchange rates stable.
Other experts, however, say VAT will decrease the consumer purchasing power and hence suppress demand, and thus be anti-inflationary. Whether the introduction of VAT will increase inflation or not, however, depends on other factors such as economic growth and interest rates, they say.
The central bank continues its clear anti-inflationary bias to ensure the disinflation process continues toward the goal of a 12 percent to 17 percent inflation rate for 2017.'
In its statement, CBAR announced that given the changes in domestic and foreign factors affecting inflation, it deems necessary to implement some anti-inflationary policies, of which the rate increase is one, while an increase in FX supply at auctions was another.
Finally, they found that the anti-inflationary monetary policy that Raghuram Rajan introduced in the second quarter of 2014 coincided with a distinct fall in inflation.
The monetary policy, which is under the sole responsibility of the Central Bank of Turkey, will also consider growth and unemployment issues as long as the measures do not contradict anti-inflationary policies, he said during a parliamentary general assembly meeting in Ankara.