Central Bank keeps interest rate constant for the seventh month in a row

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Turkey's Central Bank has kept its interest rate unchanged at 14 percent, it announced in an official statement.

The bank said it will "continue to use all available instruments decisively" in its strategy of "liraization" until "strong indicators point to a permanent fall in inflation and the medium-term 5 percent target is achieved in pursuit of the primary objective of price stability."

It stressed that the increase in the inflation rate stemmed from high energy costs due to geopolitical developments and strong supply shocks.

The bank's Monetary Policy 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," it highlighted.

The annual inflation rate was a two-decade high of 76.82 percent in June.

Noting that escalating geopolitical risks continued to impact global economic activity, the Central Bank said, "Global growth forecasts for the upcoming period are being revised downwards and the likelihood of a recession has increased."

Touching on domestic macroeconomic stability, the bank underlined that general price stability would have positive effects on the country's risk premium, foreign exchange reserves, and financing costs.

"This would create a viable foundation for investment, production and employment to continue growing in a healthy and sustainable way," it added.

Central Bank's course of policy rate changes

In the period when Central Bank Governor Murat Çetinkaya was removed from office on July 6, 2019 and Murat Uysal was appointed in his place

In July 2019, from 24 percent to 19.75 percent
In September 2019, from 19.75 percent to 16.50 percent
In October 2019, from 16.50 percent to 14 percent
In December 2019, from 14 percent to 12 percent
In January 2020, from 12 percent to 11.25 percent
In February 2020, from 11.25 percent to 10.75 percent
In March 2020, from 10.75 percent to 9.75 percent
In April 2020, from 9.75 percent to 8.75 percent
In May 2020, from 8.75 percent to 8.25 percent
In September 2020, from 8.25 percent to 10.25 percent
In October 2020, from 10.25 percent to 15 percent

In the period when Murat Uysal was removed from office as the Central Bank Governor and Naci Ağbal was appointed in his place

In December 2020, from 15 percent to 17 percent
In March 2021, from 17 percent to 19 percent

In the period when Naci Ağbal was removed from office on March 20, 2021 and Şahap Kavcıoğlu was appointed in his place

In September 2021, from 19 percent to 18 percent
In October 2021, from 18 percent to 16 percent
In November 2021, from 16 percent to 15 percent
In December 2021, from 15 percent to 14 percent

* In the months that are not indicated in this table, the policy rate was kept unchanged (The Monetary Policy Committee of the Central Bank convenes every month).

(HA/VK)

Central Bank keeps interest rate constant for the seventh month in a row

İstanbul

Central Bank's course of policy rate changes