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- October 12, 202619°
- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,194.30-0.52%
- INTEREST37.00%-1.00
- BITCOIN82,977-0.83%
- October 12, 202619°
Türkiye’s central bank keeps policy rate at 37 percent
Türkiye’s central bank kept its one-week repo rate at 37 percent at Thursday’s Monetary Policy Committee meeting. The overnight lending rate remained at 40 percent, while the overnight borrowing rate was kept at 35.5 percent.
Türkiye’s central bank kept its one-week repo rate unchanged at 37 percent. The decision was taken at a Monetary Policy Committee meeting chaired by Governor Fatih Karahan.
The committee’s statement said the overnight lending rate remained at 40 percent, while the overnight borrowing rate was kept at 35.5 percent.
Assessment points to a decline in the underlying inflation trend
The statement said that, despite monthly fluctuations, recent developments in inflation and leading indicators pointed to a decline in the underlying inflation trend.
Economic activity data and the limited pass-through of supply shocks to domestic prices were cited among the factors indicating that weakness in domestic demand was continuing.
Warning of upside risks from energy prices
The rise in energy prices driven by geopolitical developments posed an upside risk to the inflation outlook. The central bank said it was closely monitoring the impact of geopolitical developments on the inflation outlook through the cost, economic activity and expectations channels.
The statement said maintaining a tight monetary policy stance until price stability is achieved would support the decline in inflation through the channels of demand, the exchange rate and expectations. It added that interest-rate decisions would be taken with the trajectory and underlying trend of inflation, as well as expectations, in mind, while ensuring that the necessary degree of tightness was maintained.
Inflation in Türkiye fell to 31.51 percent year on year and 1.84 percent month on month in August.
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