Central Bank of the Republic of Türkiye (CBRT) Monetary Policy Committee (PPK), announced the highly anticipated interest rate decision for June. Bank, policy rate, which is the weekly repo rate percentage 37 left it constant at the level.
The Central Bank also increases the overnight lending interest rate. percentage 40, The overnight borrowing interest rate is percentage 35,5 maintained at the level.
May Loosening in Inflation and Emphasis on Geopolitical Risk
Following the upward trend in the first months of the year, The main trend of inflation, which increased in April due to the impact of energy prices decreased slightly in May stated. In the PPK statement, Drawing attention to the uncertainties created by geopolitical developments, the following statements were made::
“As a result of the uncertainties associated with geopolitical developments, volatility and high trends in energy prices continue.. While data for the first quarter show that economic activity continues to slow down, Leading data indicate that the weak course of domestic demand continues.”
“Disinflation Process Will Be Strengthened”
Central Bank, which aims to prevent inflationary pressures by keeping interest rates constant, He gave the message that the tight monetary policy stance will continue with determination. Bank, If there is a permanent deterioration in inflation A new tightening step will not be avoided He announced with these words:
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Tight stance will continue: Demand for a tight monetary policy stance to be maintained until price stability is achieved, It will strengthen the disinflation process through exchange rate and expectation channels..
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Data Driven Approach: Decisions focused on inflation outlook, taken with a meeting-based and cautious approach.
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Upside Risks: In case of a significant and permanent deterioration in the inflation outlook, the monetary policy stance will be tightened.. Board, emphasized its cautious stance against upside risks.
Credit and Deposit Markets “Macroprudential Step” signal
The Central Bank, which closely monitors the balances in the financial markets, signaled additional measures to protect the monetary transmission mechanism:
“In case of unforeseen developments in the credit and deposit markets, the monetary transmission mechanism will be supported by additional macroprudential steps.. Liquidity conditions will continue to be closely monitored and liquidity management tools will continue to be used effectively.”
Medium Term %5 Target Repeated
Central bank, the main goal for long-term price stability percentage 5 inflation He stated that he remained true to his purpose. In the statement, All decisions are predictable, It was underlined that it will continue to be taken in a data-oriented and transparent framework..
