Turkish central bank maintains policy interest rate at 50% for 8th consecutive month
Central Bank of Republic of Türkiye (CBRT) sign on entrance of headquarter in Ankara, Türkiye (AA Photo)
The Central Bank of the Republic of Türkiye (CBRT) kept its policy interest rate unchanged at 50% in November, marking the eighth consecutive month of stability.
This decision aligns with market expectations, as analysts had anticipated no change to the rate amid ongoing economic conditions.
After the Monetary Policy Committee meeting, CBRT published its decisions on its official website.
According to the central bank’s decision, indicators for the last quarter suggest a slowdown in domestic demand, aligning with disinflationary goals, while inflation in core goods and services shows a downward trend.
‘Policy interest rate to ensure tightness for projected disinflation’
The central bank pointed to an increase in food inflation due to temporary supply conditions, addressing it as “continuing to pose risks to the disinflation process”.
The decision emphasized that the policy rate is set to ensure sufficient monetary tightness to curb inflation: “The Committee reiterated that it remains highly attentive to inflation risks. Monetary policy tools will be used effectively in case a significant and persistent deterioration in inflation is foreseen.”
“The decisiveness regarding tight monetary stance will bring down the underlying trend of monthly inflation through moderation in domestic demand, real appreciation in Turkish lira, and improvement in inflation expectations,” the bank stated.
