Central Bank MPC summary published: All tools will be used decisively

In the summary of the TCMB's MPC meeting dated August 20, 2024, it was emphasized that the decisive 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 summary stated, "The tight monetary policy stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is achieved and inflation expectations converge to the projected forecast range. In case of a significant and persistent deterioration in inflation, the monetary policy stance will be tightened."

The MPC summary stated the following:

"In the event of developments outside of those anticipated in the credit and deposit markets, the monetary transmission mechanism will be supported by additional macroprudential steps. Liquidity conditions are being closely monitored, taking into account potential developments. Sterilization tools will continue to be used effectively.

'ALL TOOLS WILL BE USED DECISIVELY IN LINE WITH PRICE STABILITY'

The Committee will determine its policy decisions by taking into account the lagged effects of monetary tightening, in a way that will ensure the monetary and financial conditions necessary to 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