The Central Bank continues to lower its policy interest rate in line with its lira appreciation strategy. The policy interest, which has been in double digits since August 2020, has been reduced to 9 percent.
The Central Bank of the Republic of Turkey (CBRT) has shared the interest rate decision it took after the November meeting of the Monetary Policy Committee (MPC).
The Board decided to reduce the one-week repo tender interest rate, which is the policy interest, from 10.5 percent to 9 percent.
Interest rate announced in line with expectations
In the PPK statement in October; It was reported that a similar step would be taken at the following meeting and that the interest rate reduction cycle would be ended. Surveys also expected the Central Bank to cut interest rates by 150 basis points to 9 percent.
We will work until it reaches the 5 percent target in inflation
In the summary of the meeting chaired by Central Bank Governor Sahab Kavcioglu today, the Central Bank stated that it will continue to use all the tools at its disposal with determination within the framework of the lira strategy until strong indicators pointing to a permanent decline in inflation are formed in line with the main goal of price stability and until the medium-term target of 5 percent is reached, “the CBRT, in line with the main objective of price stability, it will resolutely continue to use all the tools at its disposal within the framework of the lira strategy until strong indicators pointing to a permanent decrease in inflation are formed and the medium-term target of 5 percent is reached. Provided stability in the general level of prices, the country risk premium and reverse the decline in currency reserves, the upward trend in currency substitution and financing costs will have a positive impact on macroeconomic stability and financial stability through persistent decline. Thus, the appropriate ground will be formed for the continuation of investment, production and employment growth in a healthy and sustainable way.” it was said.
“The interest rate cycle is over”
In the summary of the meeting, “In this context, the Board decided to reduce the policy rate by 150 basis points. The Board assessed that the current policy rate is at an adequate level, taking into account the increasing risks related to global demand, and decided to terminate the interest rate reduction cycle initiated in August.”it was announced that the course of interest reduction was completed by saying.
The policies to be implemented will be announced in December
In a statement made by the CBRT, “The Board has assessed that the current policy interest rate is at an adequate level, taking into account the increasing risks related to global demand. The policies to be implemented will be announced comprehensively in the Monetary and Exchange Rate Policy text for the Year 2023, which will be announced in December.” their testimony was included.
