CBRT leaves policy rate unchanged at 14% as expected

The Central Bank of the Republic of Turkey (CBRT) announced on Thursday that it left its policy (one-week repo) rate unchanged at 14% as expected.

Market reaction

The USD/TRY pair edged slightly lower following this announcement and was last seen posting small daily gains at 13.6200.

Key takeaways from policy statement

“Will continue to use all available instruments decisively within the framework of liraization strategy.”

“StrengtheningĀ of the improving trend in the current account balance is important for price stability.”

“Extending long-term Turkish lira investment credit will play a significant role in achieving this target.”

“Comprehensive review of the policy framework is being conducted with the aim of encouraging permanent liraization in all policy tools of the CBRT.”

“Cumulative impact of the recent policy decisions is being monitored, to create a foundation for sustainable price stability.”

“Expecting disinflation process to start on the back of measures taken.”