Central Bank announces November interest rate decision!

The TCMB has announced its November interest rate decision.

The Monetary Policy Committee (PPK) of the Central Bank of the Republic of Turkey (TCMB) has kept the interest rate steady at 50 percent for November.

'RISKS PERSIST'

The following statements were included in the PPK meeting:

A decline in the underlying trend of inflation was observed in October. Indicators for the final quarter suggest that domestic demand continues to slow down, reaching levels that support the decline in inflation. While core goods inflation remains low, signals of improvement in services inflation have become more pronounced. Unprocessed food inflation continues to remain high due to temporary supply conditions. Although inflation expectations and pricing behavior show a tendency to improve, they continue to be a risk factor for the disinflation process.

'IN CASE OF A PROJECTED DETERIORATION IN INFLATION...'

The determined stance in monetary policy will reduce the underlying trend of monthly inflation and strengthen the disinflation process through the rebalancing of domestic demand, real appreciation of the Turkish lira, and improvement in inflation expectations. The increased coordination of fiscal policy will also make a significant contribution to this process. The tight monetary policy stance will be maintained until a significant and permanent decline in the underlying trend of monthly inflation is achieved and inflation expectations converge to the projected forecast range. Accordingly, the level of the policy rate will be determined in a way that provides the tightness required by the projected disinflation process, taking into account inflation realizations and expectations. The Committee has reiterated its cautious stance against upside risks to inflation. In the event that a significant and permanent deterioration in inflation is projected, monetary policy tools will be used effectively.

In case of developments outside of what is projected in the credit and deposit markets, the monetary transmission mechanism will be supported with additional macroprudential steps. Liquidity conditions are being closely monitored, taking into account potential developments. Sterilization tools will continue to be used effectively.

The Committee will determine its policy decisions by also taking into account the lagged effects of monetary tightening, in a way that will ensure the monetary and financial conditions that will reduce the underlying trend of inflation and reach the 5 percent target in the medium term.

Indicators regarding inflation and the underlying trend of inflation will be closely monitored, and the Committee will decisively use all tools at its disposal in line with its main objective of price stability.

The Committee will take its decisions within a predictable, data-driven, and transparent framework.

News Source: 12punto