Central Bank leaves monetary policy rate unchanged at 19% as expected

The Central Bank of the Republic of Turkey (CBRT) announced Thursday that it left its policy rate (one-week repo) unchanged at 19% as expected. “Taking into account the high levels of inflation and inflation expectations, the current tightening monetary policy stance will be decisively maintained until the significant fall from the forecast trajectory of the inflation report is achieved,” said the central bank.

The monetary authority reiterated that the policy rate will continue to be determined at a level above inflation. On the outlook, he indicated that a decelerating impact of monetary tightening is being observed on credit and domestic demand. He warned that inflation expectations remain at high levels that pose risks.

Regarding the economy, the CBRT stated that Main indicators show that domestic activity remains strong in the third quarter.

After the statement, the Turkish lira went up on the market, extending the rise against the dollar. USD / TRY fell to the lowest level since August 6 after breaking below 8.55.

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