CBRT Lowered The Interest Rate to 15 Percent

The CBRT lowered the interest rate to 15 percent. The policy rate, which was 16 percent, was withdrawn to 15 percent at this meeting.

The Monetary Policy Committee of the Central Bank of the Republic of Turkey announced its interest rate decision. In line with the expectations, the CBRT reduced the policy rate by 100 basis points to 15 percent. In the text, it was noted that the Monetary Policy Committee will consider completing the use of the limited space in December. In the CBRT statement, "The Board expects the temporary effects of supply-side factors outside the influence of monetary policy on price increases to continue throughout the first half of 2022." made statements. Together with the rate cut, the sum of the rate cuts during the period of CBRT Governor Şahap Kavcıoğlu reached 400 basis points. The CBRT Monetary Policy Committee's interest rate decision was announced 5 minutes late. In the text of the resolution, it was stated that the recent rise in inflation was driven by supply-side factors such as increases in import prices, especially in food and energy, and disruptions in supply processes, increases in directed prices and developments in demand, and the positive effects of the update in the monetary policy stance on commercial loans began to be seen. As the reason for the reduction, the Committee pointed to analyzes aimed at decomposing the demand factors that can be affected by monetary policy, core inflation developments and the effects of supply shocks. The Committee added that it expects the temporary effects of supply-side and non-monetary factors on price increases to continue throughout the first half of 2022.