The Central Bank of the Republic of Türkiye (CBRT) left a constant at 46 percent by not changing the policy interest.
The expectations would also be fixed. Economists and analysts expected the policy interest to be fixed and the “Wait – See” policy in June, and in July.
The PPK text generally pointed out that the decline in inflation continued and the demand slowed down.
It was emphasized that geopolitical developments were closely monitored in the text. Liquidity management tools will continue to be used effectively said.
Monetary policy strict stance in inflation permanent decrease and price stability will be continued until it is stated.
The text of the Monetary Policy Committee is as follows;
“Yasar Fatih Karahan (President), Osman Cevdet Akcay, Elif Kildir Hobikoglu, Hatice Karahan, Fatma Ozkul.
The Monetary Policy Committee (Board) decided to keep the tender interest rate of one week with a policy interest rate at 46 percent. In addition, the Board kept the Central Bank’s lending interest rate at 49 percent in the night term and the borrowing interest rate in the night term at 44.5 percent.
The main trend of inflation declined in May. Pioneering data indicate that the decline in the main trend continues in June. Data for the second quarter indicate that domestic demand is slowing down. The possible effects of geopolitical developments and increasing protectionism in global trade on the disinflation process are closely monitored. Inflation expectations and pricing behaviors continue to be a risk element for the disinflation process.
Detected stance in monetary policy; It reinforces the disinflation process by means of balance in domestic demand, real valuation in Turkish Lira and inflation expectations. The increasing coordination of the fiscal policy will also make significant contributions to this process. Strict monetary policy stance will be maintained until permanent decrease and price stability in inflation are achieved. In this direction, policy interest; Inflation will be determined in a way that provides the tightness required by the disinflation process envisaged by considering the main trends and expectations. The Board shall determine the steps to be taken regarding the policy interest rate with an inflation appearance focused, cautious and meeting -based approach. In case of a significant and permanent deterioration in inflation, all monetary policy instruments will be used effectively.
In case of developments outside the foreseen in the credit and deposit markets, the monetary transfer mechanism will be supported by steps. Liquidity conditions will be closely monitored and liquidity management tools will continue to be used effectively.
Taking into account the delayed effects of monetary tightening of the policy decisions, the Board shall determine the main tendency of inflation in a way that provides monetary and financial conditions that will reach the target of 5 percent in the medium term. In this respect, all monetary policy instruments will be used with determination. The Board shall take its decisions within a predictable, data -oriented and transparent framework.
Monetary Policy Committee Meeting Summary will be published within five working days. “
