MNI CBRT WATCH: CBRT Holds At 50%, Says Could Adjust Rates
MNI (LONDON) - The Central Bank of the Republic of Turkey kept key interest rates unchanged Thursday, with the policy rate remaining at 50% for the ninth successive meeting, but adjusted its statement to say it could adjust rates as inflation eases. (See MNI EM CBRT WATCH: Rates To Hold As Inflation Forecast Raised)
Underlying inflation is declining, the Bank said in a statement, while demand has slowed to disinflationary levels. There are also signs that services inflation is starting to improve.
Having said in October that the CBRT’s tight monetary stance will be maintained “until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range,” November’s statement said that “the level of the policy rate will be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realized and expected inflation.” (See MNI EM INTERVIEW: Conditions Right For CBRT Cut -Ex-Deputy Turhan).
At the same time, the Monetary Policy once again reiterated that it remains highly attentive to inflation risks. The last time it cut rates was in February 2023.