The Monetary Policy Committee of the Central Bank of the Republic of Turkey (CBRT) kept the one-week repo rate unchanged, while reiterating the message given in the Inflation Report presentation that “the monetary policy stance will be tightened in case of a deterioration in the inflation outlook”.
In the statement released with the Monetary Policy Committee Decision, it was stated that “The Committee assessed that the current level of the policy rate will be maintained until a significant and permanent decline in the underlying trend of monthly inflation is achieved and inflation expectations converge to the projected forecast range.”
Regarding the inflation outlook, the statement read as follows: “The Committee will closely monitor the alignment of inflation expectations and pricing behavior with the projections and the effects of wage increases on inflation.” The statement also read as follows: “The decisive monetary policy stance will continue to contribute to the real appreciation of the Turkish lira, which is one of the main elements of disinflation.”