Central Bank's interest rate decision announced

The Central Bank has kept its policy rate unchanged for the 7th time and decided to maintain the policy rate at 50 percent.

In the statement issued by the Central Bank of the Republic of Türkiye, the following expressions were included: "The Monetary Policy Committee (the Committee) has decided to keep the policy rate, which is the one-week repo auction rate, unchanged at 50 percent.

In September, the underlying trend of inflation rose slightly. Indicators for the third quarter suggest that domestic demand continues to slow down, approaching levels that support a decline in inflation. While core goods inflation continues to remain low, an improvement in services inflation is expected to materialize in the final quarter. Uncertainty regarding the pace of improvement in inflation has increased due to the recent data flow. The Committee noted that inflation expectations and pricing behavior continue to pose a risk factor for the disinflation process.

The resolute 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. While the Committee decided to keep the policy rate unchanged, it reiterated its cautious stance against upside risks to inflation. 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 the event of a significant and sustained deterioration in inflation, monetary policy tools will be used effectively.”

News Source: 12punto