Central Bank keeps key rate unchanged

Central Bank keeps key rate unchanged

Central Bank keeps key rate unchanged

Türkiye’s Central Bank has kept the policy rate (one-week repo auction rate) constant at 14 percent on July 21. 

“The committee expects disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict,” the bank said in a statement released after the Monetary Policy Committee meeting yesterday.

To create an institutional basis for sustainable price stability, the comprehensive review of the policy framework continues with the aim of encouraging permanent and strengthened liraization in all policy tools of the Central Bank, the statement added.

The bank reiterated that it will continue to use all available instruments decisively within the framework of liraization strategy until strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability.

The monetary authority delivered its last interest rate change in December 2021, when it cut the policy rate by 100 basis points from 15 percent to 14 percent.

Turkish, Economy, Interest Rates,