(MENAFN- Trend News Agency)
The Central Bank reduced its key policy reduce the policy rate -
one-week repo auction rate - from 13 percent to 12 percent after
delivering a 100 basis points cut last month, Trend reports citing Hurriyet Daily
Most analysts had expected the bank to keep the key interest
rate unchanged at its Monetary Policy Committee (MPC) meeting on
“The committee expects the disinflation process to start on the
back of measures taken and decisively implemented for strengthening
sustainable price and financial stability along with the resolution
of the ongoing regional conflict,” said the bank in a statement
released after the MPC meeting.
Increase in inflation is driven by the lagged and indirect
effects of rising energy costs resulting from geopolitical
developments, effects of pricing formations that are not supported
by economic fundamentals, strong negative supply shocks, according
to the statement.
Consumer prices increased by 1.46 percent in August from July,
bringing the annual inflation rate from 79.6 percent to 80.2
In the latest Medium-Term Program, the government forecasts that
annual inflation will ease from 65 percent at the end of 2022 to
24.9 percent next year and further down to 9.9 percent in 2025.
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