CBRT Did Not Change The Policy Rate

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

Evaluations about inflation drew attention in the text of the decision. In the text, it was pointed out that in addition to the recent increases in import prices and administered/directed prices, demand conditions, supply constraints in some sectors, and volatility in inflation could be seen in summer due to the opening up. It was underlined by the CBRT that this volatility and high levels of inflation expectations continue to pose risks on pricing behavior and inflation outlook. It was observed in the text that the messages given at the previous meetings on monetary policy remained the same. In the final decision, it was stated that the slowing effects of monetary tightening on loans and domestic demand were observed. Considering the high levels of inflation and inflation expectations, the message was repeated that the current tight stance in monetary policy would be maintained decisively until a significant decrease in the forecast path of the April Inflation Report is achieved. The message was also reiterated that the policy rate would continue to be set at a level above inflation, while maintaining the strong disinflationary effect, until strong indicators pointing to a permanent decline in inflation occur and the medium-term 5 percent target is reached.