The Central Bank Monetary Policy Board convened under the chairmanship of Central Bank Governor Fatih Karahan.
In the press release regarding the bank's interest rate, it was noted that the Monetary Policy Committee (Board) decided to keep the one-week repo auction interest rate, which is the policy rate, constant at 45 percent.
In the statement, it was emphasized that the main trend of monthly inflation in January increased as envisaged in the inflation forecast path, as a result of time-dependent price and wage updates specific to the first month of the year, and headline inflation recorded a limited increase. "Indicators for the near term indicate that the balancing in domestic demand continues. The balancing process in question is strong in consumer goods and gold imports, but slower than expected in other consumption expenditure indicators. In addition, rigidity in service prices, geopolitical risks and food prices keep inflation pressures alive. The Board will closely monitor the compliance of inflation expectations and pricing behavior with the forecasts and the effects of wage increases on inflation. External financing conditions, the level of reserves, the improvement in the current account balance and the demand for Turkish lira assets continue to contribute to exchange rate stability and the effectiveness of monetary policy. "The determined stance in monetary policy will continue to contribute to the real appreciation process of the Turkish lira, which is one of the main elements of disinflation."
