The Central Bank announced its highly anticipated interest rate decision. The Central Bank of the Republic of Turkey kept the one-week repo auction rate (policy rate) constant at 14 percent.
While inflation concerns increased with the currency crisis, the CBRT Monetary Policy Committee (PPK) kept the policy rate of 14 percent constant.
In the MPC statement, “The Board has decided to keep the policy rate constant. The cumulative effects of the decisions taken are closely monitored, and a comprehensive policy framework review process, which prioritizes the TL in all policy instruments of the CBRT, is carried out in order to reshape price stability on a sustainable basis in this period.
The statement continued as follows: “The Board anticipates that the disinflationary process will begin with the elimination of base effects in inflation, together with the steps taken to establish sustainable price stability and financial stability.”