Turkish central bank holds policy rate steady

22 Nov '24

1 min read

Turkish central bank holds policy rate steady

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Turkiye's central bank yesterday kept the policy rate unchanged at 50 per cent.
"The level of the policy rate will be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realised and expected inflation," the bank said.
The trend of inflation declined in October to 48.6 per cent, but was higher than expected.

The Turkish central bank (TCMB) yesterday decided to keep the policy rate, i.e., the one-week repo auction rate, unchanged at 50 per cent.

"The level of the policy rate will be determined in a way to ensure the tightness required by the projected disinflation path, taking into account both realised and expected inflation," the bank said in a release after its monetary policy committee meeting.

The trend of inflation saw a decline in October to 48.6 per cent, but was higher than expected. Indicators for the last quarter suggest that domestic demand continues to slow down, reaching disinflationary levels.

While core goods inflation remains low, signs for an improvement in services inflation have become more apparent, the release said.

While inflation expectations and pricing behaviour tend to improve, they continue to pose risks to the disinflation process, it noted.

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