Announcement of the Central Bank of Turkey's Decision on Interest Rates
The Central Bank of the Republic of Turkey has maintained its policy interest rate, specifically the weekly repo auction rate, at 50 percent. The Monetary Policy Committee meeting chaired by Yaşar Fatih Karahasan was held, during which it was decided that the bank’s policy interest rate, which is the weekly repo interest rate, would remain at 50 percent.
Text of the Announcement
In the committee's announcement, it is stated:
"The main trend of inflation showed a limited decrease in April. Recent indicators suggest that domestic demand has declined compared to the first quarter of the year. However, the increase in imports of consumer goods in April has constrained the improvement in the current account balance. High service inflation, inflation expectations, geopolitical risks, and food prices continue to exert inflationary pressures. The committee closely monitors inflation expectations and pricing behaviors."
Effects of Monetary Policy
The committee has indicated that the effects of monetary tightening on credit and domestic demand are being carefully tracked. It has also emphasized that a cautious stance regarding high inflation risks will be maintained, and the stringent monetary policy will continue until the main trend of inflation clearly and consistently declines.
