On Thursday, the Central Bank of the Republic of Turkey (CBTR) kept its benchmark interest rate, the one-week repo rate, unchanged at 14.00%, as expected.
Main statements of the CBTR, via Reuters
“Despite the loss of momentum, credit growth and the distribution of funds for real economic activity are closely watched.”
“We will resolutely continue to implement the strengthened macroprudential policy and additional measures will be taken when necessary.”
“We will continue to resolutely use all available instruments within the framework of the liberalization strategy until solid indicators point to a permanent fall in inflation.”
“The effects of high global inflation on inflation expectations and international financial markets are being closely monitored.”
“The stability of the general level of prices will foster macroeconomic and financial stability.”
“Tourism-driven improvement in the current account balance continues at a solid pace.”
“The high course of energy prices and the probability of a recession in the main trading partners keep the risks on the current balance alive.”
market reaction
USD/TRY pulled back modestly from 2022 highs after the CBTR policy announcements and hovered above 17.65, showing a daily gain of 0.45%.
Source: Fx Street
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