CBRT keeps interest rates steady at 50 percent for 7th consecutive meeting
Date
10/20/2024 2:24:58 AM
(MENAFN) On Thursday, the Central bank of the Republic of Türkiye (CBRT) announced its decision to keep the policy interest rate steady at 50 percent, marking the seventh consecutive meeting in which the rate has remained unchanged. In its official statement, the bank noted that while core goods inflation is currently low, there has been a slight uptick in the underlying inflation trend. The CBRT expressed optimism that inflation in the services sector could improve in the final quarter of the year, suggesting a potential easing of inflationary pressures.
Additionally, the central bank pointed to recent data indicating a slowdown in domestic demand, which may signal a gradual shift toward disinflation. This observation suggests that the measures taken to control inflation may be starting to have an effect, although the CBRT remains cautious about the overall economic landscape. The bank emphasized that increased uncertainty surrounding the pace of inflation improvement could pose challenges moving forward.
Despite the signs of potential disinflation, the CBRT warned that inflation expectations and pricing behaviors continue to represent significant risks to achieving its disinflation goals. The monetary policy committee reiterated its concerns over these ongoing risks, which could impede progress in reducing inflation levels. As a result, the decision to maintain the policy interest rate reflects the bank's heightened vigilance regarding inflation risks.
In its statement, the CBRT affirmed that it will uphold a tight monetary stance until there is clear evidence of a substantial and sustained decline in the underlying trend of monthly inflation. Moreover, the bank indicated that it will continue to monitor inflation expectations closely, ensuring that they align with the projected forecast range before making any changes to its policy stance.
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