CBRT Did Not Change the Policy Rate

The CBRT did not change the policy rate. Central Bank of the Republic of Turkey left the interest rate unchanged at 19 percent.

In the statement made by the Monetary Policy Committee, the CBRT (Central Bank of the Republic of Turkey) stated that it will continue to use all the tools at its disposal in line with its main objective of price stability. Following statements were made: "Until strong indicators pointing to a permanent decline in inflation occur and the medium-term 5 percent target is reached, the policy rate will continue to be set at a level above inflation, while maintaining the strong disinflationary effect." While it was stated that the MPC will continue to make its decisions in a transparent, predictable and data-oriented framework, it was pointed out that the acceleration of the vaccination process worldwide, especially in developed countries, supports the recovery process in the global economy. Emphasizing the continuing impact of rising global inflation and inflation expectations on international financial markets, the following statements were used: "Domestic economic activity remains strong. In the second quarter, domestic demand lost some momentum due to the epidemic restrictions and tightening in financial conditions, while foreign demand maintains its strength. In addition to cost factors stemming from import prices, demand conditions, supply constraints in some sectors, and inflation in the last period. "The high levels in expectations continue to pose risks on pricing behavior and the inflation outlook. Considering the high levels of inflation and inflation expectations, the current tight stance in monetary policy will be resolutely maintained until a significant decrease in the forecast path of the April Inflation Report is achieved."