CBRT Published Monetary Board Meeting Summary

CBRT Published Monetary Board Meeting Summary CBRT published monetary board meeting summary. By publishing the summary of the PPK meeting which increased the interest rate by 475 basis points, Central Bank of the Republic of Turkey (CBRT) drew attention to assessments of reserve regulations. According to the published summary, the CBRT thinks that there should be a change in reserve requirement regulation.   The following statements were included in the meeting summary: “The Committee considered the need for a change in reserve requirement regulation to increase the effectiveness of the monetary transmission mechanism in line with the main objective of price stability.” In the published summary, statements were made that the CBRT decided to tighten monetary policy on the grounds of eliminating the risks to the inflation outlook, controlling inflation expectations and re-establishing the disinflation process immediately. In summary, in the upcoming period, considering the tight monetary stance and all factors affecting inflation, we will continue with determination until a permanent decrease in inflation is achieved. On the other hand, statements regarding the simplification framework were also included in the abstracts. Accordingly, “The Committee has decided to implement a simple operational framework in order to increase transparency and predictability in addition to monetary tightening, and to make all funding through the one-week repo rate, which is the main policy instrument. The funding provided through the auctions and Late Liquidity Window facilities will be made through one-week repo amount auctions, which are the main monetary policy tools, as of November 20.”