CBRT Did Not Change Interest Rate

CBRT Did Not Change Interest Rate CBRT did not change the interest rate. Interest rate wasn’t changed in the PPK meeting today. Central Bank of the Republic of Turkey (CBRT), did not change the interest rate increase despite the market expectations. The bank kept the policy rate at 10.25 percent. CBRT, increased the late liquidity window interest; The interest rate, which was 13.25 percent, was increased to 14.75 percent. The CBRT raised the policy rate last month for the first time after September 2018, from 8.25 percent to 10.25 percent.   The statement made by the CBRT Monetary Policy Committee: “Despite the signs of partial recovery in the third quarter with the normalization steps taken by countries in the global economy, uncertainties regarding the recovery continue. Developed and developing countries maintain their expansionary monetary and fiscal stances. The global effects of the epidemic through capital flows, financial conditions, foreign trade and commodity prices are closely monitored. The recovery in economic activity continues. With the recent policy steps taken, the normalization trend in commercial and retail loans has become more evident. With the gradual withdrawal of the supportive policies implemented within the scope of epidemic measures, it is seen that the foreseen balancing in imports has started. Strong recovery in exports of goods, relatively low levels of commodity prices and real exchange rate will support the current account balance in the upcoming period. As a result of the rapid recovery achieved in the economy with strong credit momentum and developments in financial markets, inflation followed a higher course than expected. With the steps taken within the scope of monetary policy and liquidity management in order to bring inflation expectations under control and to limit the risks to the inflation outlook, financial conditions were significantly tightened. Accordingly, the Committee has decided to increase the flexibility in liquidity management and maintain liquidity measures until a significant improvement is achieved in the inflation outlook, while keeping the policy rate constant. The Committee considers that the reestablishment of the disinflation process is of great importance for the decline in the country risk premium, the fall in long-term interest rates and the strengthening of the recovery in the economy. The cautious monetary policy stance should be maintained in order for the decrease in inflation to occur in line with the targeted path. In this framework, the monetary stance will be determined in a way to ensure the continuity of the decline in inflation, taking into account the indicators of the underlying trend. The Central Bank will continue to use all the tools at its disposal for the purposes of price stability and financial stability. It should be emphasized that any new data and news to be announced may cause the Board to change its policy stance for the future.”