Türkiye’s Central Bank Maintains Policy Rate at 8.5 percent

(MENAFN) Türkiye’s central bank has decided to keep the one-week repo rate, also known as the policy rate, constant at 8.5 percent, in line with market expectations. The Central Bank of Türkiye stated that it is crucial to maintain supportive financial conditions to preserve the growth momentum in industrial production and the positive trend in employment after the earthquake. Two powerful earthquakes hit 11 provinces in southern Türkiye on February 6, causing extensive damage and killing and injuring tens of thousands.

The current monetary policy stance is deemed adequate to support the necessary recovery in the aftermath of the earthquake by maintaining price stability and financial stability. The central bank also highlighted that the effect of earthquake-driven supply-demand imbalances on inflation is closely monitored, even though the level and underlying trend of inflation have improved with the support of the implemented integrated policy approach.

The decision to keep the policy rate unchanged is a positive sign for Türkiye’s economy, which has been affected by the COVID-19 pandemic and the recent earthquakes. The central bank’s monetary policy stance is expected to support economic recovery and preserve financial stability in the country.

Türkiye’s annual consumer inflation rate has eased to a 12-month low of 5.18 percent in February, according to the latest data from the Turkish Statistical Institute (TurkStat). The central bank’s decision to maintain the policy rate at 8.5 percent is in line with its efforts to maintain price stability and support economic recovery while keeping inflation in check.

In its February meeting, the central bank cut the rate by 50 basis points to 8.5 percent, which brought the total reduction in the key rate to 550 basis points, or 5.5 percentage points, since August 2022. The central bank’s monetary policy has played a crucial role in supporting the economy during the pandemic and the earthquake, and its decision to maintain the policy rate is expected to continue to support the necessary recovery in the aftermath of the earthquake while preserving financial stability.

MENAFN26032023000045014228ID1105862031

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.