Turkey Leaves Monetary Policy Unchanged

Turkish central bank decided on September 25th to leave its benchmark one-week repo rate unchanged at 8.25 percent. The remaining rates were also left on hold, as high food prices keep pushing inflation up.
Central Bank of Turkey | Joana Taborda | joana.taborda@tradingeconomics.com 9/25/2014 12:18:05 PM
The marginal funding rate was left on hold at 11.25 percent; the interest rate on borrowing facilities provided for primary dealers via repo transactions was kept at 10.75 percent, and the borrowing rate at 7.5 percent. The late liquidity window borrowing rate was kept at 0 percent and the lending rate was left steady at 12.75 percent.

Statement by the Central Bank of the Republic of Turkey:

Loan growth continues at reasonable levels in response to the tight monetary policy stance and macroprudential measures. Exports remain supportive of balanced growth in spite of weakening global demand. 

Macroprudential measures taken at the beginning of the year and the tight monetary policy stance started to have favorable impact on the core inflation trend. Elevated food prices continue to delay the improvement in the inflation outlook. Meanwhile, declining commodity prices are expected to limit upside risks on inflation. 

Inflation expectations, pricing behavior and other factors that affect inflation will be closely monitored and the tight monetary policy stance will be maintained, by keeping a flat yield curve, until there is a significant improvement in the inflation outlook. 

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

Turkey Leaves Monetary Policy Unchanged