Turkey Holds Key Policy Rate at 8%

The Central Bank of Turkey held its benchmark one-week repo rate at 8 percent on January 18th, as widely expected, saying the current monetary policy stance will be maintained until there is a significant improvement in the inflation outlook.
Central Bank of Turkey | Joana Ferreira | joana.ferreira@tradingeconomics.com 1/18/2018 11:07:49 AM
The overnight lending rate was kept at 9.25 percent and the overnight borrowing rate at 7.25 percent. Also, the late liquidity window rate stood at 12.75 percent, after a 50bps hike in the previous meeting.

Statement by the Central Bank of the Republic of Turkey:

Recently released data indicate that economic activity maintains its strength. Domestic demand continues to expand and external demand contributes positively to exports.

Current elevated levels of inflation and inflation expectations continue to pose risks on the pricing behavior. Accordingly, the Committee decided to maintain the tight monetary policy stance.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement, independent of base effects and temporary factors, and becomes consistent with the targets. Inflation expectations, pricing behavior and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered.

It should be emphasized that any new data or information may lead the Committee to revise its stance.

The summary of the Monetary Policy Committee Meeting will be released within five working days.

Turkey Holds Key Policy Rate at 8%